WASHINGTON, Sept. 4 (Xinhua) -- More districts reported "flat or declining" economic activity, and consumer spending ticked down in most districts, the U.S. Federal Reserve said in its Beige Book released on Wednesday.
Economic activity grew slightly in three districts, while the number of districts that reported flat or declining activity rose from five in the prior period to nine in the current period, according to the Beige Book.
The Beige Book, a survey on economic conditions based on information collected from its 12 regional reserve banks, is published eight times per year.
Employment levels were steady overall, though there were "isolated reports" that firms filled only necessary positions, reduced hours and shifts, or lowered overall employment levels through attrition, the survey showed.
The survey noted that consumer spending ticked down in most districts, having generally held steady during the prior reporting period.
Manufacturing activity declined in most districts, and two districts noted that these declines were part of ongoing contractions in the sector, according to the survey, which was released one day after the Institute for Supply Management (ISM) reported that economic activity in the U.S. manufacturing sector contracted in August for the fifth month in a row.
The Beige Book also showed that residential construction and real estate activity were mixed, though most districts' reports indicated softer home sales. Reports on commercial construction and real estate activity were also mixed.
Looking ahead, district contacts generally expected economic activity to remain stable or to improve somewhat in the coming months, though contacts in three districts anticipated slight declines, the Beige Book said.
U.S. Federal Reserve Chair Jerome Powell recently said that the "time has come" for monetary policy to adjust, sending a straightforward message to markets that the central bank will likely cut interest rates in its Sept. 17-18 meeting.
The Chicago Mercantile Exchange Group's FedWatch Tool, which acts as a barometer for the market's expectation of the Fed funds target rate, showed that the probability of the Fed cutting rates by 25 basis points at the September meeting is 55 percent as of Wednesday. The probability of the Fed cutting rates by 50 basis points is 45 percent, up from 38 percent on Tuesday.
