The Beige Book is a summary of commentary on current economic conditions by Fed district and is published eight times a year.
The US Federal Reserve’s latest Beige Book found the economy growing modestly as September began, the labour market continuing to offer jobs despite worker turnover subsiding somewhat and consumers showing some price sensitivity, even as inflation recedes from its peak of two years ago.
Most districts reported declining manufacturing activity.
Commercial real estate markets were generally flat.
US economic activity was little changed in nearly all Fed districts since early September, though two districts reported modest growth.
Most districts reported declining manufacturing activity.
Reports on consumer spending were mixed, with some districts noting shifts in the composition of purchases, mostly toward less expensive alternatives.
Commercial real estate markets were generally flat.
The short-lived dockworkers strike caused only minor temporary disruptions. Hurricane damage affected crops and prompted pauses in business activity and tourism in the Southeast.
Agricultural activity was flat to down modestly, with some crop prices remaining unprofitably low.
Energy activity was also unchanged or down modestly, and lower energy prices reportedly compressed producers’ margins.
Despite elevated uncertainty, Fed contacts were somewhat more optimistic about the longer-term outlook.
Employment rose slightly during the reporting period, with more than half of the districts reporting slight or modest growth and the remaining districts reporting little or no change. Many districts reported low worker turnover, and layoffs reportedly remained limited.
Demand for workers eased somewhat, with hiring focused primarily on replacement rather than growth, a Fed release noted.
Worker availability improved, as many contacts reported it had become easier to find the workers based on their need. However, contacts noted that it remained difficult to find workers with certain skills or in some industries, such as technology, manufacturing and construction.
Inflation continued to moderate with selling prices reportedly increasing at a slight or modest pace in most districts.
Many districts noted increasing price sensitivity among consumers. Input prices generally rose moderately.
Fibre2Fashion News Desk (DS)