The Atlanta Fed’s Regional Economic Information Network (REIN) reports that the southeastern U.S. economy is experiencing a slowdown in demand, though it remains generally healthy.

Businesses are becoming more cautious.

• While some sectors, such as government infrastructure and energy, continue to see growth, others like transportation, warehousing, and autos are showing signs of weakening.
• Labor markets have stabilized with easier hiring and moderated wage growth, but there is some caution regarding future staffing due to softening demand.
• Inflation is slowing, particularly in goods, but firms are facing reduced pricing power, with costs largely stabilizing, except for persistent increases in insurance.

Overall, firms are maintaining solid conditions but remain cautious about the outlook for the second half of 2024. They expect low to flat growth and are preparing to make conservative adjustments if necessary. Despite this caution, there is optimism about inflation easing and the potential for a healthy end to the year.

Read more https://www.atlantafed.org/economy-matters/regional-economics/2024/08/15/entering-the-second-half-of-2024-rein-takes-the-economys-temperature

Joseph Carboni
Marketing, Operations & Technology Manager
Shupe Carboni & Associates