On Wednesday, the Federal Reserve said that the economy of the United States was expanding at a decent pace in October as well as early November, as supported by the growing consumer spending.
In their latest assessment of the business conditions all over the nation, the Fed struck a greater upbeat tone than they had in their previous report.
However, it was still noted that most of the Fed’s twelve districts were not feeling growth in manufacturing that has been affected by an increasing trade war with the Chinese.
The Fed report that is also known as the beige book shall be utilized when Fed officials will meet in mid-December for setting interest rate policies.
Those rate cuts that had followed four rate hikes in the previous year have provided a boost to the interest-rate sensitive sectors of their economy such as auto sales and housing.
There are high expectations that China and the U.S. will soon sign an agreement on a Phase 1 trade agreement which shall prevent the President of the United States, Donald Trump from imposing new set of Tariffs on goods from China.
The tariffs of the United States have provoked retaliation from China that has affected the American manufacturers as well as farmers who had to see their Chinese markets disappear.
The beige book has said that as compared to the previous report, this year, more districts have shown expansion in manufacturing, although the number is still below half of the districts.
Among the other responses, the Richmond Fed district also mentioned that the manufacturers in their area were seeing pickup in shipments as well as new orders but were continuing to face constraints from trade uncertainties and tariffs.