Fed reports modest US economic growth amid price pressures
The US economy has continued to grow at a modest pace since early July, while employment has increased slightly, according to the Federal Reserve System’s new Beige Book report. This was reported by Anadolu Agency.
Ten of the Federal Reserve System’s 12 districts reported slight or modest growth in economic activity. No changes were recorded in two districts. Overall employment increased only slightly: three districts noted a modest increase in jobs, while labor markets remained unchanged in five.
Prices and consumer demand
Wages increased at slight or modest rates in most regions. More noticeable wage growth was mainly recorded in construction and manufacturing, where there is demand for skilled workers. Companies in eight districts moderately raised selling prices, while manufacturing and construction firms continued to face high pressure from input costs.
Consumer spending increased somewhat overall. At the same time, buyers became more price-sensitive, although demand for expensive goods remained steady. Vehicle sales were mostly weak due to low consumer confidence, high fuel prices and more expensive financing.
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Manufacturing, construction and agriculture
Tourism activity strengthened: airlines reported high demand despite rising ticket prices. Manufacturing picked up in most regions, and companies noted steady orders related to the defense sector and data centers.
Financial conditions improved somewhat, as lending volumes in most parts of the country remained stable or increased. Residential construction declined, while nonresidential construction increased, largely due to new data center projects.
In agriculture, the situation improved somewhat but remained difficult for crop producers. At the same time, the livestock sector showed better results. Businesses also reported significant increases in healthcare and insurance costs, while more expensive energy and transportation affected retail trade and manufacturing.
Business representatives generally assessed the coming months positively, but pointed to increased uncertainty due to international conflicts, policy changes and energy prices.
