Fed: US businesses remain optimistic

Wednesday, 04. September 2019 20:00

The economy continued to expand at a modest pace in July and August but consumer spending is mixed, the United States Federal Reserve revealed on Wednesday in its so-called Beige Book, published eight times a year. "Although concerns regarding tariffs and trade policy uncertainty continued, the majority of businesses remained optimistic about the near-term outlook... Home sales remained constrained in the majority of Districts due primarily to low inventory levels, and new home construction activity remained flat," the document adds and points to "modest" car sales overall.

Contacts from companies informed the central bank's subsidiaries of "softened" activity in transportation and that manufacturing is "down slightly." Agriculture is under pressure from weather, low prices and uncertainties emanating from the trade war with China, they said.

Employment is still rising modestly with but with flat-to-lower figures in manufacturing. The rates of wage growth are modest to moderate just like in the previous report.

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