ST. LOUIS, MO (KMOX) - "Conflict in the Middle East is cited as a major source of uncertainty," says Charles Gascon, Economist and Assistant Vice President at the Federal Reserve Bank of St. Louis.
Gascon says cost of fuel, plastics, and metal continue to put manufacturers in a squeeze. "Input costs are still rising faster than prices businesses are able to charge to households and so that's still compressing profit margins." He does point to what he calls "the tale of two consumers" -- higher end consumers continue to spend on travel, luxury, and dining out, while lower income consumers are trying to cover the cost of necessities.
In this latest Beige Book from the Federal Reserve, banks report more consumers are using credit. Financial institutions say they're also seeing an increase in overdrafts.
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