Fed highlights weak economic growth in Beige Book

The US Federal Reserve (Fed) stated in its “Beige Book” report that the outlook for future economic growth remains weak in general. The Fed reported in its “Beige Book” report, prepared with analyses from 12 branches of the bank, that economic activity in the US has not changed since the beginning of July. The report, which stated that most consumer spending has been flat in the region, noted that spending has shifted from discretionary products to food and other essential items. The report noted that manufacturing activity increased in a few regions, despite some reports of decreased production due to supply chain disruptions and labor shortages. The report indicated that demand for energy products was strong, while production remained limited due to supply chain bottlenecks for critical components. The report drew attention to expectations that demand would soften further over the next 6 to 12 months, and included the assessment that “The outlook for future economic growth remains weak in general.” The report, which stated that employment increased at a moderate to moderate pace in most regions, reported that labor market conditions generally remained tight. The report said that price levels remain very high, but nine of the 12 regions reported that the rate of increase has moderated to some extent. The report noted that significant price increases were seen in all regions, particularly in food, rent, utilities and accommodation, while manufacturing and construction input costs remained high, while low fuel prices and generally cooling demand eased cost pressures. The report said most expect price pressures to continue at least until the end of the year.