The Beige Book document, in which the FED provides information about the course of the US economy, has finally been published. Here are the important details and everything you need to know from the document in question.
- Economic activities have increased slightly on a balanced basis since the beginning of January, with eight regions reporting slight to moderate growth in activity, three regions reporting no change and one region recording a slight softening.
- Employment increased at a slight to modest pace in most regions.
- While the outlook for future economic growth remains generally positive, those contacted said they expect stronger demand and less restrictive financial conditions over the next 6 to 12 months.
- Price pressures continued during the declaration period, but many regions reported some moderation in inflation.
- Consumer spending, particularly on retail products, has declined in recent weeks.
- Overall, labor market tightness has decreased further.
- Wages have increased further across the region, although several reports indicate a slower rate of increase.
- Credit demand has remained stable or low and credit quality has been generally healthy despite a few reports of defaults.
- Businesses struggled to pass on higher costs to their customers, who were increasingly sensitive to price changes.
- Ongoing shipping disruptions in the Red Sea and Panama Canal generally did not have a significant impact on businesses during the reporting period.
*This is not investment advice.