The U.S. economy cooled in the first two months of 2019, with growth characterized as "slight-to-moderate" across most of the country in a Federal Reserve survey.
"About half of the districts noted that the government shutdown had led to slower economic activity in some sectors," according to the report released in Washington.
The central bank’s Beige Book economic report, based on anecdotal information collected by the 12 regional Fed banks through February 25, said consumer spending was also held back by harsh winter weather and higher costs of credit. Manufacturing strengthened, but companies reported "concerns about weakening global demand, higher costs due to tariffs and ongoing trade policy uncertainty."
The report is likely to support the decision by many Fed officials to pledge patience on future interest-rate hikes amid a healthy, but slightly slowing, economic expansion, Bloomberg reported.
In the last Beige Book, eight of 12 districts said growth was "modest to moderate," while the report said 10 saw it as "slight-to-moderate" and two reported "flat economic conditions."
The Federal Open Market Committee will meet again March 19-20 in Washington.
