Economic Activity Trends

Recent reports indicate a slight growth in economic activity across three Federal Reserve districts, but the overall picture has worsened, with districts reporting flat or declining activity increasing from five to nine. Employment levels have remained stable overall, yet there are reports of firms being cautious, filling only essential positions or reducing shifts and hours. Layoffs, however, have reportedly been rare, suggesting that employers are more focused on optimizing their current workforce rather than significant reductions. Despite moderate wage growth, increases in non-labor input costs and selling prices have been observed, reflecting a complex economic landscape.