KANAS CITY - "Uncertainty" is still the key theme in the latest snapshot of economic activity in the region. "That's leading to a lot of hesitancy and a lot of caution among businesses and households," says Charles Gascon, economist and research officer at the Federal Reserve Bank of St. Louis.
Everyone is watching what happens with prices, which Gascon says are increasing, "there are widespread reports of contacts expecting their costs and prices to rise at a faster rate going forward..." especially over the next several months.
Overall, the latest Beige Book report from the 8th District (which includes Arkansas and parts of Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee) says the outlook remains slightly pessimistic, with signs of continued deterioration.
Gascon tells KMOX's Total Information AM, that businesses are making contingency plans. "What we're seeing in reports is declining hours worked, reductions in overtime, some places there are hiring pauses, and some businesses are putting together staff reduction plans," however Gascon points out, there aren't widespread reports of layoffs.
He points out, businesses are making contingency plans if costs increase and they have to pass those along to buyers. Gascon says consumer spending reports are mixed -- in some cases households pulled back, but in other areas spent money to get ahead of expected tariffs.
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