Copper Prices Exposed to AI Downturn Risk: Trafigura

Economic activity changed little on balance since the previous report, with three Districts reporting slight to modest growth in activity, five reporting no change, and four noting a slight softening. Overall consumer spending, particularly on retail goods, inched down in recent weeks, although auto sales were boosted in some Districts by strong demand for electric vehicles ahead of the expiration of a federal tax credit at the end of September. Demand for leisure and hospitality services by international travelers fell further over the reporting period, while demand by domestic consumers was largely unchanged. Nevertheless, spending by higher-income individuals on luxury travel and accommodation was reportedly strong. Several reports highlighted that lower- and middle-income households continued to seek discounts and promotions in the face of rising prices and elevated economic uncertainty. Manufacturing activity varied by District, and most reports noted challenging conditions due to higher tariffs and waning overall demand. Activity in agriculture, energy, and transportation was generally down among reporting Districts. Conditions in the financial services sector and other interest rate-sensitive sectors, such as residential and commercial real estate, were mixed; some reports noted improved business lending in recent weeks due to lower interest rates, while other reports continued to highlight muted activity. The outlook for future economic growth varied by District and sector. Sentiment reportedly improved in a few Districts, with some contacts expecting an uptick in demand over the next 6 to 12 months. However, many others continued to expect elevated uncertainty to weigh down activity. One District report highlighted the downside risk to growth from a prolonged government shutdown. Fed Beige Book Said Overall Economic Activity Was Little Changed; Three Districts Saw Modest Growth, Five Were Flat, And Four Reported Slight Softening Fed Beige Book: Wages grew across all reporting distrcts. MORE FED'S BEIGE BOOK: 'EMPLOYMENT LEVELS 'LARGELY STABLE;' DEMAND FOR LABOR 'LARGELY MUTED;' WAGES UP 'AT MODEST TO MODERATE PACE' #BeigeBk #FederalReserve #economy

RBA's Gov. Bullock: Latest data suggest consumption has been little stronger than we thought. RBA'S GOV. BULLOCK: 4.2% UNEMPLOYMENT AT THE MOMENT IS GOOD. ... Just in | RBA Governor Bullock: Headline inflation shows signs of volatility. Just in | RBA Governor Bullock Indicates Output Gap Near Balance, Challenges in Assessment Persist RBA'S GOV. BULLOCK: SLOWER PRODUCTIVITY MEANS ECONOMY AND WAGES CAN'T GROW AS QUICKLY. ...

RBA GOV BULLOCK: POLICY IS NOT REALLY RESTRICTIVE IN AUSTRALIA, RATHER MARGINALLY TIGHT MODELS SUGGEST NUETRAL RATE ABOUT 3.0%, BUT VERY UNCERTAIN