Contacts in some Districts cited concerns over the potential impact of the European fiscal crisis on financial and business conditions, and reported a corresponding increase in uncertainty and financial market volatility.
Atlanta also reported, however, that the Gulf oil spill and Tennessee floods had already resulted in some vacation lodging cancellations. The potential exists for a much greater impact, although contacts are quite uncertain as to the ultimate effects.
Prices of final goods and services were largely stable as higher input costs were not being passed along to customers and wage pressures continued to be minimal.