Mixed Economic Trends in San Francisco and New York Districts

The latest reports from the Federal Reserve Banks of San Francisco and New York provide insights into the economic activity in their respective districts. Here’s a summary of the key findings:

San Francisco District:

Economic Activity:

  • Economic activity in the Twelfth District, encompassing much of the western United States, saw a slight strengthening from July to mid-August.
  • Hiring activity remained stable, with improved labor availability.
  • Price increases continued, but at a slower pace, and wage pressures softened further.
  • Retail sales showed a slight increase, though service sectors had mixed performance.
  • Manufacturing demand remained stable, while agriculture and resource-related sectors remained largely unchanged.
  • Residential real estate activity was flat, while commercial real estate had mixed performance.
  • Lending activity moderated, and there was increased demand for shelters and food bank services, especially in areas affected by wildfires and severe weather events.

Labor Markets:

  • Hiring was generally stable, with some employers reporting overstaffing.
  • Technology sector hiring remained subdued, except for positions focused on artificial intelligence.
  • Agriculture and health-care sectors continued investing in automation.
  • Hiring challenges persisted in sectors like aviation, retail trade, and food services.
  • Wage pressures softened across most sectors.


  • Prices increased at a slower pace for most products and services.
  • Price pressures persisted for utilities, insurance, used vehicles, and packaging.
  • Some firms maintained above-average inventory levels due to global economic uncertainty.

Community Conditions:

  • Housing affordability, homelessness, and food insecurity remained challenges.
  • Increased demand for shelters and food banks, especially in areas impacted by natural disasters.
  • Nonprofit organizations faced challenges meeting the demand for behavioral health and substance misuse services.

New York District:

Economic Activity:

  • Economic activity in the Second District, which includes New York City, held steady.
  • Labor market conditions remained solid, with modest employment gains and steady wage growth.
  • Inflationary pressures increased slightly.
  • Supply availability improved, but manufacturing activity contracted.
  • Consumer spending grew steadily, led by spending on experiences.
  • Exceptionally low inventory continued to restrain home sales.
  • Commercial real estate markets were mostly unchanged.

Labor Markets:

  • Labor market conditions remained solid, with some slowing in hiring.
  • Employment increased modestly, with stronger gains in some sectors.
  • Remote work remained prevalent in the service sector.
  • Wage growth continued steadily, though the pace moderated somewhat.
  • Worker shortages remained a challenge, especially in leisure & hospitality.


  • Inflationary pressures increased slightly after easing for much of the past year.
  • Input price increases picked up for service firms and manufacturers.
  • Selling prices increased at a steady pace for both sectors.

Community Perspectives:

  • Rising numbers of asylum seekers increased the need for social services and education.
  • New York City’s emergency shelter system faced significant pressures due to growing numbers of migrant families.

Both districts observed various economic trends, reflecting the complex and evolving economic landscape. While challenges like housing affordability and labor shortages persist, there are also positive signs of economic stability and growth.

For more detailed information about the economic conditions in each district, visit the respective Federal Reserve Bank’s website.