Several factors are working to slow the economy, it says in a report released today.
Regional consumer confidence measurements for the Pacific states have declined, and retail sales are weaker in the West than nationally, it says. The fall in stock prices has lowered consumers' spendable wealth and will affect tax revenues if capital gains and options earnings decline as expected in 2001. The high-tech sector has experienced weaker sales, higher inventories, and lower earnings, prompting a series of announced job reductions and higher energy costs may slow the region's economic expansion in 2001, the Fed says.