National Summary - Economic activity increased slightly to moderately across the twelve Federal Reserve Districts in late November and December, with consumer spending rising moderately and strong holiday sales reported [11] - Construction activity decreased overall due to high costs for materials and financing, while manufacturing saw a slight decline with some manufacturers stockpiling inventories in anticipation of higher tariffs [11] - Residential real estate activity remained unchanged, high mortgage rates continued to suppress demand, while commercial real estate sales edged up [11] - Nonfinancial services sector grew slightly, particularly in leisure, hospitality, and transportation, although truck freight volumes were down [11] - Agricultural conditions remained weak with lower farm incomes and weather-related challenges, while energy activity was mixed [11] Labor Markets - Employment ticked up slightly, with six Districts reporting increases and six reporting no change, particularly in healthcare and construction sectors [12] - Wage growth picked up to a moderate pace in most Districts, although some reports indicated easing wage pressures [12] Prices - Prices increased modestly overall, with growth rates ranging from flat to moderate, and input costs also rose, particularly for health insurance [14] - Contacts expected prices to continue rising in 2025, with potential for higher tariffs contributing to price increases [14] Highlights by Federal Reserve District Boston - Economic activity increased slightly, with modest increases in tourism and home sales, while prices remained mostly steady [15] New York - Economic activity increased slightly, with moderate growth in consumer spending and a slight improvement in commercial real estate markets [16] Philadelphia - Business activity continued to grow slightly, with auto sales leading consumer spending, although manufacturing reported a slight decline [17] Cleveland - Business activity grew modestly, with higher-than-anticipated retail sales, while manufacturing demand remained soft [18] Richmond - The regional economy grew modestly, with increased consumer spending and a slight uptick in commercial real estate activity [19] Atlanta - Economic activity expanded modestly, with steady employment and moderate growth in consumer spending and auto sales [20] Chicago - Economic activity increased slightly, with modest increases in consumer spending and employment, while manufacturing and business spending decreased slightly [21] St. Louis - Economic activity continued to expand slightly, with positive holiday sales reports [22] Minneapolis - Economic activity grew slightly, with moderate wage growth and a positive outlook for the year ahead [23] Kansas City - Economic activity expanded slightly, led by consumer spending, with expectations for growth in hiring and price growth [24][25] Dallas - The economy expanded moderately, with growth in manufacturing and nonfinancial services, while home sales increased slightly [26] San Francisco - Economic activity expanded slightly, with stable employment levels and modest growth in retail sales [27] Sector-Specific Insights Retail and Tourism - Retail contacts reported slight increases in revenues, while tourism activity experienced modest growth, particularly in air travel [32] Manufacturing - Manufacturing sales were flat on average, with some firms reporting unexpected softness in demand [33] IT and Software Services - Demand for IT and software services remained stable, with expectations for strong revenue growth in early 2025 [34] Commercial Real Estate - Commercial real estate activity was mostly flat, with elevated long-term interest rates limiting transactions [36] Residential Real Estate - Home sales rose modestly, supported by improved inventories, although high mortgage rates continued to suppress demand [37]
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FOMCยท2025-04-23 19:00