The Richmond Fed business survey results suggest that wage growth is slowing, and firms expect a return to pre-COVID-19 levels over the next year.

Firms are planning to maintain or increase their workforce in 2024, despite persistent hiring challenges and a recent downturn in short-run expectations.

Although our surveys show signs that the labor market may be cooling, many Fifth District firms continue to report difficulty finding workers with the right skill sets.

The labor market has surprised economists and forecasters with its resilience. Data from our business surveys indicate that the Fifth District labor market may be cooling.

Since the second half of 2022, we have observed firms increasingly pulling back on capital expenditures.

Supply chain disruptions and fluctuating input costs are improving for some Fifth District firms, but the threat of a recession looms large according to August's surveys of businesses.