The US Federal Reserve has said in its latest Beige Book that the country saw “slight to modest” economic growth between September and early October, as trade tensions and slower global growth created an additional drag on the US economy.
Boston Fed said chip manufacturers in its district were delaying new plant construction due to uncertainty about trade policy.
New York Fed said manufacturers and wholesalers in its district have expressed ongoing concern about tariffs and trade tensions and the related uncertainty going forward.
“Contacts in some districts suggested that persistent trade tensions and slower global growth weighed on activity,” said the Fed.
As for the price level, the Fed said that even though most districts across the US characterized the recent pace of price increases as “modest”, tariffs were putting more pressure on the price of some products.
“Both retailers and manufacturers noted rising input costs, often for items subject to new tariffs, but retailers had relatively more success passing through these cost increases to their customers,” the Fed said.