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Employment increased in almost all districts, growth remained slow

The Federal Reserve published the beige book report on US economic activity stating that employment increased in almost all districts, although growth remained slow.

In addition, it states that economic activity continued to increase in all districts, with a growth rate characterized as mild to modest in most.

Key notes

Changes in activity varied greatly by sector.

Job increases were reported more consistently for manufacturing companies, although companies continued to report new permits and layoffs.

Most districts continued to report tight labor markets, attributing it to concerns about worker health and childcare.

However, some districts noted that some companies found it easier to hire workers.

Manufacturing activity generally increased at a moderate pace; Residential housing markets continued to experience steady demand.

Commercial real estate conditions continued to deteriorate in many districts.

Wages rose slightly in most districts, often linked to companies’ difficulty finding workers, especially for low-wage or high-demand jobs.

Consumer spending growth remained positive with some districts reporting stabilization in retail sales and a slight rebound in tourism activity.

Prices have risen modestly in all districts since the previous report.

Demand for cars was steady, reports on agricultural conditions were mixed.

Districts characterized the prospects for contacts as generally optimistic or positive, but with a considerable degree of uncertainty.

Restaurateurs in many districts expressed concern that cooler weather will slow sales.

Input costs generally increased faster than consumer prices.

Banking contacts in many districts expressed concern that delinquency rates may increase in the coming months.

Overall, consumer prices in the districts increased modestly, with the notable exceptions of food, automobiles and appliances, which increased significantly.

Multiple districts reported ongoing additional costs to businesses due to COVID. ”

Market implications

Stocks and the dollar were unchanged post-release as markets focus on stimulus talks and progress toward a financial aid package for the nation.

Credits: Forex Street

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