U.S. Economic Activity Increasing Slightly, Fed's Beige Book Says

(RTTNews) - Overall U.S. economic activity has increased slightly since late May, according to the Federal Reserve's Beige Book released Wednesday afternoon.

The Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, said five districts reported slight or modest growth, five noted no change, and two reported slight and modest declines.

Reports on consumer spending were mixed, the Fed said, with growth generally observed in consumer services but some retailers noting shifts away from discretionary spending.

Meanwhile, the Fed said manufacturing activity edged up in half of the districts but declined in the other half.

"Overall economic expectations for the coming months generally continued to call for slow growth," the Beige Book said.

The Beige Book also said employment increased modestly this period, with most districts experiencing some job growth.

"Employers continued to have difficulty finding workers, particularly in health care, transportation, and hospitality, and for high-skilled positions in general," the Fed said.

The central bank added, "However, many Districts reported that labor availability had improved and that some employers were having an easier time hiring than they were having previously."

Wages continued to rise but more moderately, the Fed said, with contacts in multiple districts reporting that wage increases were returning to or nearing pre-pandemic levels.

On the inflation front, the Beige Book said prices increased at a modest pace overall, and several districts noted some slowing in the pace of growth.

"Contacts in some Districts noted reluctance to raise prices because consumers had grown more sensitive to prices, while others reported that solid demand allowed firms to maintain margins," the Fed said.