Emphasis on ‘slow growth’ in Fed’s Beige Book
The Federal Reserve of the United States (Fed) affirmed that the economic activity in the country has “increased a little” since the end of May, and the expectations are that the slow growth will continue in the coming months.
The Fed released the June edition of the “Beige Book” report, which includes assessments of the current state of the US economy.
The report, which was compiled from analyzes of the bank’s 12 branches, noted that overall economic activity had “increased slightly” since late May.
GROWTH EXPECTATIONS BY SECTOR
The report noted that overall growth was seen in consumer services, but some retailers reported moving away from discretionary spending.
In the report, it was stated that tourism and travel activities are strong and a busy summer season is expected in the accommodation sector.
In the report, where manufacturing activity increased in half of the regions and decreased in the other half, it was noted that economic expectations for the coming months generally continue to be in the direction of “slow growth.”
EMPLOYMENT INCREASED MODERATELY
In the report, which also includes assessments of labor markets, employment was reported to have increased moderately in this period, with some job growth in most regions.
Many regions reported better workforce availability, with some employers reporting that hiring was easier than before, according to the report.
Additionally, the report noted that employers reported unusually high turnover rates in recent years had returned to pre-pandemic norms, and it noted that wages continued to rise, albeit more moderately.
INFLATION EXPECTATIONS
In the report, it was claimed that wage increases in more than one region returned to or were close to pre-pandemic levels.
It was also noted in the report that prices increased at a moderate pace overall, with a slight slowdown in the rate of increase in some regions.
The report noted that price expectations were generally flat or lower over the next few months. (AA)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
