High greenback weighs on manufacturing and tourism

The most recent Beige Book, for the survey period between mid-August and early-October, indicates that economic activity increased at a modest (half of Districts) or moderate (quarter of Districts) pace in most of the country. Boston and Richmond Districts also reported increases in economic activity while only the Kansas City District noted a slight decline in economic output.

Credit conditions were generally positive with declining delinquencies and improving loan quality broadly reported. Aside for manufacturers and mining firms, who are not hiring and are sometimes cutting staff, labor conditions have continued to improve with most domestically-oriented firms planning to hire employees in the coming months. 

"Price pressures remain contained in light of the lower energy, IT, and agriculture goods prices. Moreover, these declines are spreading to manufacturers and transport firms, which already remain under pressure given the high U.S. dollar and lackluster global growth, both of which appear to be affecting tourism activity also", notes TD Economics.