WASHINGTON (dpa-AFX) - Ahead of its monetary policy meeting later this month, the Federal Reserve on Wednesday released its Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts.
While the Beige Book said economic activity grew slightly in three districts, the number of districts that reported flat or declining activity rose from five in the prior period to nine in the current period.
The increase in the number of districts reporting flat or declining activity partly reflected weakness in consumer spending, which ticked down in most districts after having generally held steady during the prior reporting period.
The Fed said manufacturing activity also declined in most districts, with two districts noting that these declines were part of ongoing contractions in the sector.
Looking ahead, the Beige Book said, 'District contacts generally expected economic activity to remain stable or to improve somewhat in the coming months, though contacts in three Districts anticipated slight declines.'
The report also said employment levels were generally flat to up slightly in recent weeks, with five districts seeing slight or modest increases in overall headcounts.
However, a few districts reported that firms reduced shifts and hours, left advertised positions unfilled or reduced headcounts through attrition, although accounts of layoffs remained rare.
While the Beige Book also said prices increased modestly in the most recent reporting period, three districts reported only slight increases in selling prices.
The Beige Book is typically released two weeks ahead of the Fed's next monetary policy meeting, with the next meeting scheduled for September 17-18.
The Fed is almost universally expected to lower interest rates later this month, although there is some debate about the size of the rate cut.
CME Group's FedWatch Tool currently indicates a 57.0 percent chance of a quarter point rate cut and a 43.0 percent chance of a half point rate cut.
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