Many Districts are still reporting wage increases and the growing use of benefits, however. There are also indications that worker shortages are limiting growth in a few areas. Consumer spending appears to be slowing according to this Beige Book release. Retail sales are slowing, primarily for apparel and other seasonal items. Most areas are also reporting a slower pace of vehicle sales and some areas indicated that dealer inventories are increasing.
Retailers are still optimistic, however, despite the slower pace of activity.
District reports were mixed in regards to manufacturing activity, but generally indicate slowing since the last Beige Book release. In particular, demand for durable goods such as heavy equipment, agricultural equipment and metals appears to have softened. Construction and real estate activity is also slowing in most Districts, which is consistent with other recently released data. Although economic growth appears undaunted in some Districts and within some industries, a higher interest rate environment appears to be slowing most areas of the economy. This report supports the general consensus that policymakers will leave interest rates alone through the remainder of this year.