Economy
March 12, 2019
Fed: Economy Feels Government Shutdown, Harsh Winter Weather
Written by Tim Triplett
U.S. economic activity continued to expand in late January and February, but might have expanded more were it not for the government shutdown and harsh winter weather conditions, reports the Federal Reserve in its March 6 Beige Book. Ten of the Fed Districts reported slight-to-moderate growth, while Philadelphia and St. Louis reported flat economic conditions.
About half of the Districts noted that the government shutdown had led to slower economic activity in some sectors including retail, auto sales, tourism, real estate, restaurants, manufacturing and staffing services. Consumer spending activity was mixed across the country, with contacts from several Districts attributing lower retail and auto sales to harsh winter weather and to higher costs of credit.
