According to him Federal Reserve Beige Book, “most districts indicated little or no change in economic activity since the September report.” The report noted that “the near-term outlook for the economy was generally described as stable or slightly weaker growth.”
Main conclusions of the Beige Book:
In most districts, economic activity has barely changed since the September report.
Consumer spending was uneven, especially between general retailers and auto dealers, due to differences in pricing and product offerings.
Banking contacts reported a slight to moderate decline in loan demand. Consumer credit quality was generally described as stable or good, with delinquency rates historically low but rising slightly.
The situation of the real estate sector has not changed much and the stock of homes for sale remains low.
Activity in the manufacturing sector was uneven, although contacts in several districts indicated an improvement in the sector’s prospects.
The short-term economic outlook were generally described as stable or having slightly weaker growth.
The expectations of companies for which the Christmas shopping season is an important driver of sales were mixed.
Labor market rigidity continued to decline across the country. Most districts reported slight to moderate increases in overall employment, and companies were hiring with less urgency.
Prices continued to rise at a moderate pace overall. Districts noted that input cost increases have slowed or stabilized for manufacturing, but continue to rise for service sector businesses. Increases in fuel, wage and insurance costs contributed to price growth in all districts.
In general, companies expect prices to increase in the coming quarters, but at a lower rate to that of previous quarters.
Market reaction
The Dollar Index remained stable after the release of the Federal Reserve Beige Book, around 106.40, up 0.20% on the day. The EUR/USD pair remained slightly below 1.0550.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
