Fed: Some retailers see negative impact from government shutdown on consumers

Economic Activity & Consumer Spending - Economic activity showed little change, with some districts experiencing modest decline [1] - Consumer spending declined, though high-end retail remained resilient [1] - Auto dealers saw declines in EV sales, possibly due to the expiration of tax incentives [1][2] Manufacturing & Trade - Manufacturing increased somewhat, but tariffs and tariff uncertainty acted as headwinds [2] - Input cost pressures were widespread in manufacturing and retail, largely due to tariffs [6] - Companies faced margin compression and financial strains from tariffs, with mixed plans to raise prices [7] Labor Market & Employment - Employment declined slightly, with half of districts reporting weaker labor demand [3] - Hiring freezes and attrition were used to limit employment rather than layoffs [4] - AI replaced entry-level positions or increased worker productivity, curbing new hiring [5] - Employers found it easier to find workers in some sectors, but construction remained tough [5] - Wages grew at a modest pace, but rising health insurance premiums put upward pressure on labor costs [5] Inflation & Prices - Prices rose modestly during the period [6] - Pass-through of higher input costs varied across companies [7] Social Impact - Community organizations saw increased demand for food assistance, partly due to SNAP disruptions [3] Real Estate - Ongoing recovery was noted in the office real estate market [2]