The remaining two counties reported no change in activity.
Consumer spending overall barely increased, but reports varied widely across counties and spending categories, the Beige Book, published eight times a year, said.
In its latest Beige Book, the Fed said overall U.S. economic activity grew mildly on balance, with 10 of the Fed's 12 regions seeing mild economic growth. or modesty. Overall consumer spending barely increased. Production activity decreased slightly. The economic outlook among contacts is cautiously optimistic.
Several reports mention weakness in discretionary spending, as consumer price sensitivity remains high.
Manufacturing activity fell slightly as only three Fed regions reported growth in the sector. Commercial real estate leasing decreased slightly.
The economic outlook among stakeholders is cautiously optimistic and balanced.
Employment overall grew at a mild pace, with nine counties reporting very slow to modest increases, and the remaining three counties reporting no change in employment.
Most districts recorded an increase in labor supply and quality of job applicants. Some Districts reported improved employee retention and others pointed to layoffs at some companies.
Wages increased at a moderate pace in eight counties, with the remaining four counties recording only slight to modest wage increases. Several districts said annual wage growth had recently returned to their historical averages.
Average price increases were modest, at a similar pace as in the most recent Beige Book. Disruptions in the Red Sea and the collapse of the Key Bridge in Baltimore have caused some shipping delays but have so far not led to widespread price increases.
Movements in raw material prices were uneven, but six districts recorded moderate increases in energy prices.
Sharp increases in insurance rates have been recorded for both businesses and homeowners.
The ability of companies to pass on increased costs to consumers has weakened significantly in recent months, leading to smaller profit margins. Inflation also puts a strain on nonprofits, leading to service cuts in some cases.
On balance, contacts expect that inflation will stabilize at a slow pace in the near term.
At the same time, contacts in several districts – mostly manufacturers – see near-term inflation risks in both input and output prices.
Fiber2 Fashion News Desk (DS)
