Consumers halt spending and business decisions until after election

With the US election approaching, many consumers and businesses are putting off or delaying major spending and financial decisions, according to the Federal Reserve’s latest Beige Book report.

Based on feedback from regional banks, the report reveals widespread caution. Half of Americans feel the election could significantly impact their finances. Concerns about stock market stability and potential tax policy changes add to this hesitation.

Business slowdown across regions
In Richmond, businesses report a typical “nervous period” that has slowed buyer purchases until after the election.

Similarly, Cleveland sees weakened demand for manufactured goods, with metal product shipments lagging. Many companies are delaying new orders and waiting to assess post-election consumer confidence.

Nonprofits are also cautious. In Dallas, several charities noted economic uncertainty affecting donations. 

Hiring and investment on pause
In New York, companies are putting hiring and major decisions on hold until after November 5.

Across the country, businesses are holding off on starting new projects as they wait to see if the election will bring stability.