Economic activity continued to expand at a modest to moderate pace across the 12 Federal Reserve Districts in March and early April. Outlooks remained positive, but contacts in various sectors including manufacturing, agriculture and transportation expressed concern about the newly imposed and/or proposed tariffs.
In general, manufacturing respondents were optimistic in their outlook. However, two contacts brought up the proposed China tariffs and said they represent a major risk. Of seven firms contacted this cycle, only one reported a year-over-year decline in sales and four reported higher sales versus the same period a year ago.