Economic Buzz: Future Economic Growth Outlook In US Remain Weak, Notes Feds Beige Book

8 Sep 2022 , 09:36 AM

The Feds Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, noted five districts reported slight to modest growth in activity and five others reported slight to modest softening. The Fed said most districts reported steady consumer spending, as households continued to shift spending away from discretionary goods and toward food and other essential items. Manufacturing activity grew in several districts, according to the report, although there were some reports of declining output as supply chain disruptions and labor shortages continued to hamper production. With regard to inflation, the Fed said prices remained highly elevated, with substantial price increases reported across all districts, particularly for food, rent, utilities, and hospitality services. However, the report noted nine districts reported some degree of moderation in rate of price growth in recent months. Looking ahead, the Fed said the outlook for future economic growth remained generally weak, with contacts noting expectations for further softening of demand over the next six to twelve months. Powered by Commodity Insights