(Finance) – Economic activity in the United States increased slightly in most districts.” This was stated by the Federal Reserve in Beige Book of November 2024, the report on the state of the US economy which will form the basis for the next monetary policy decisions.
Three regions showed modest or moderate growth that offset flat or slightly declining activity in two others, the report said. Although the growth in economic activity has generally been reduced, growth expectations have increased moderately across most geographies and industries. Business contacts expressed optimism that demand will increase in the coming months. Consumer spending was generally stable.
Furthermore, the Mortgage demand was low overallalthough reports on recent changes in demand for home loans have been mixed due to rate volatility. Commercial real estate lending was similarly subdued. However, contacts generally reported that funding remained available.
Looking at the job market, the Beige Book shows that “i Employment levels remained stable or increased only slightly in the districts.” Hiring activity was moderate as worker turnover remained low and few companies reported increased staffing. The level of layoffs was also reported as low. Contacts indicated they expected l employment would remain stable or increase slightly next year, but many were cautious in their optimism about any pickup in La hiring activity Wage growth moderated to a modest pace in most districtsas well as expectations for wage growth in the coming months.
As for inflation, “i prices increased only at a modest pace in the Federal Reserve districts.” Both consumer-oriented and business-oriented contacts reported greater difficulty in passing costs on to customers. Input prices were said to be rising faster than selling prices for most companies, resulting in declining profit margins. While input prices have increased overall, contacts in several districts have noted declines in some raw materials and non-labor costs. In contrast, insurance prices have increased again reported widely as significant cost pressures for many businesses. Contacts indicated that they expect the current pace of price growth to persist, but businesses in several districts have indicated that the tariffs pose a significant upside risk to inflation.
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