Fed says economic activity flat as manufacturing shrinks

The US Federal Reserve said economic activity was little changed in nearly all districts since early September, however, most districts reported a decline in manufacturing activity.

Energy activity was also unchanged or down modestly, and lower energy prices reportedly compressed producers’ margins, according to Beige Book report issued on Oct. 23.

The short-lived dockworkers strike caused minor temporary disruptions; hurricane damage impacted crops and prompted pauses in business activity and tourism in the Southeast.

More than half of the districts report slight or modest growth in employment activity and the remaining districts reporting little or no change. Many districts reported low worker turnover, and layoffs reportedly remained limited.

Demand for workers eased somewhat, with hiring focused primarily on replacement rather than growth.

For inflation, the prices of some food products, such as eggs and dairy, were reported to have increased more sharply. Multiple districts reported that input prices generally rose faster than selling prices, compressing firms’ profit margins.

This report was prepared at the Federal Reserve Bank of New York based on information collected on or before Oct. 11, 2024. It is published eight times a year, with each of the 12 district banks collecting information on current economic conditions in its region.