Fed’s Beige Book shows modest growth as prices rise
The Federal Reserve released its Beige Book, in which the US central bank revealed that economic activity increased modestly since early July, while overall employment rose slightly. Regarding inflation, prices rose in eight districts.
Input pressures were elevated in manufacturing and construction across multiple districts due to price increases in energy, raw materials, transportation, and petrochemicals.
Key highlights:
EMPLOYMENT ROSE VERY SLIGHTLY OVERALL, WITH THREE DISTRICTS SHOWING MODEST GAINS IN EMPLOYMENT, FOUR REPORTING SLIGHT GAINS, AND FIVE DISTRICTS EXPERIENCING NO CHANGE.
ECONOMIC ACTIVITY INCREASED MODESTLY SINCE EARLY JULY.
THE GENERAL OUTLOOK FOR THE COMING MONTHS WAS POSITIVE, BUT SENTIMENT WAS MIXED ACROSS SECTORS, WITH CONTACTS REPORTING HEIGHTENED UNCERTAINTY SURROUNDING THE EFFECTS OF HIGHER ENERGY PRICES, POLICY, AND INTERNATIONAL CONFLICT.
PRICES INCREASED MODERATELY IN EIGHT DISTRICTS, WITH TWO DISTRICTS REPORTING MODEST INCREASES, ONE SLIGHT INCREASES, AND ONE ROBUST INCREASES.
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