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Federal Reserve Beige Book: U.S. Economic Activity Shows Modest Growth, Businesses More Optimistic About Demand Outlook

Federal Reserve Beige Book: U.S. Economic Activity Shows Modest Growth, Businesses More Optimistic About Demand Outlook

Bitget2024/12/04 21:46

The latest Federal Reserve Beige Book survey shows that after remaining largely flat in recent months, U.S. economic activity saw slight growth in November, with businesses becoming more optimistic about the demand outlook. According to the report released on Wednesday, "Overall economic activity showed modest growth, with growth expectations rising moderately across most regions. Business contacts are optimistic about increased demand in the coming months. Consumer spending remained generally stable."

The recent Beige Book report paints a more subdued economic picture compared to official statistics, with near-zero growth rates, a decline in hiring, and only modest price increases. In many instances, this contrasts with broader economic data that still shows robust economic activity. The latest Beige Book indicates that inflation is rising only moderately, and as consumer price sensitivity increases, businesses are facing more difficulty passing on higher costs. Hiring activity remains sluggish, employee turnover is low, and layoffs are limited. Business contacts noted they expect employment to stabilize with moderate growth. "Wage growth has moderately slowed in most districts, and expectations for wage growth in the coming months are also subdued."

This Beige Book was compiled by the Kansas City Fed based on information collected by November 22 or earlier.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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