WASHINGTON—Economic activity in November was flat or moderately up over September, although the growth rate was down from the modest pace of the earlier month, according to the latest analysis released as part of the Federal Reserve’s Beige Book.
Not surprisingly, it’s interest rates and inflation that continue to mute economic activity, according to the Fed, with many of its 12 districts expressing greater uncertainty or increased pessimism concerning the outlook.
The Fed book shows auto sales declined slightly on average, but sales increased significantly in a few districts in response to higher inventories. As CUToday.info has been reporting, higher interest rates have also slowed home sales, which declined at a moderate pace overall but fell steeply in some areas of the country.
The Fed also noted that hiring and retention difficulties eased further, although labor markets were still described as tight.
‘Unevenness in Economy’
“The latest Beige Book reflects unevenness in the economy. Businesses catering to consumers at either end of the income spectrum are flourishing,” said NAFCU Vice President of Research and Chief Economist Curt Long. “High-income households still have plenty of excess savings on hand, while lower-income households are increasingly substituting into cheaper alternatives.
“The overall economy continues to slow modestly, which should accommodate a slower pace of policy tightening from the FOMC,” continued Long. “NAFCU continues to anticipate a 50-basis point hike later this month.”
The report was based on information collected on or before Nov. 23.