Economic growth was modest during July and August, according to the Federal Reserve’s Beige Book report on economic conditions in the country’s 12 major regions. The document also adds that employment growth was moderate.
“Contacts from most districts indicated that economic growth was modest during July and August,” the report says. “Consumer tourism spending was stronger than expected, rising during what most contacts saw as the last leg of pent-up demand for pandemic-era leisure travel.”
Other retail spending, however, continued to slow, especially on discretionary items. Consumer spending is closely watched as it makes up a sizable portion of the U.S. economy.
“Other retail spending continued to slow, especially on non-essential items. Some districts highlighted reports suggesting that consumers may have depleted their savings and are relying more on loans to support spending,” the Beige Book shows.
WORK
Job growth was moderate across the country, according to the report. The Beige Book shows that although hiring has slowed, most districts indicated that imbalances persisted in the labor market.
“The availability of skilled workers and the number of applicants remained restricted,” the report showed.
INFLATION
Price growth slowed in most districts, falling most quickly in the manufacturing industry and the consumer goods sector. However, contacts in several districts have pointed to sharp increases in property insurance costs in recent months.
“New automobile sales expanded in many districts, but contacts noted that this had more to do with better inventory availability than increased consumer demand,” the Fed report says.
Contacts in the manufacturing industry in several districts said supply chain delays had improved, which helped them better fulfill existing orders. Meanwhile, new orders have held steady or declined in most districts.
“Delays decreased as demand for manufactured goods declined. One sector where supply no longer became available was single-family housing,” the Beige Book concludes.