The Federal Reserve released its “Beige Book” report of economic conditions across the central bank’s 12 districts. The report revealed that “economic activity has declined slightly since the previous report” on April 23rd with all Federal Reserve districts reporting “elevated levels of economic and policy uncertainty, which have led to hesitancy and a cautious approach to business and household decisions.” The report also found hiring was “little changed” across most of the Federal Reserve’s 12 districts, with seven describing employment as “flat” amid widespread growth in applicants and lower turnover rates. All Federal Reserve districts also noted “lower labor demand,” declining hours worked and reduced overtime, hiring pauses, and more staff reduction plans. The report also described inflation as rising “at a moderate pace.”
This data followed a Wednesday report from the Trump Commerce Department that new orders for manufactured goods fell more than expected in April, dropping 3.7% on the month, more than the 3.3% Dow Jones forecast. Meanwhile, the Organization for Economic Cooperation and Development forecast U.S. economic growth will slow to 1.6% this year from 2.8%, saying that President Trump’s erratic trade wars will disrupt global commerce, drive up costs, and leave businesses and consumers paralyzed by uncertainty.