WASHINGTON— Overall economic activity was unchanged on balance since early July, although that depends on the region of the country, according to the newest Beige Book data released by the Federal Reserve.
Federal Reserve released its latest Beige Book, which reveals that economic activity was unchanged on balance since early July.
Of note, five of the Fed districts reported slight to modest growth in activity, while five others reported slight to modest softening.
According to the Beige Book analysis, the Fed districts reported steady consumer spending as households continued to trade down and to shift spending away from discretionary goods and toward food and other essential items.
Loan demand was mixed as well, while financial institutions reported generally strong demand for credit cards and commercial and industrial loans, residential loan demand was weak amid elevated mortgage interest rates, the Fed said.
“The Beige Book notes both a slowdown in economic activity and a moderation in inflation,” said NAFCU Chief Economist and Vice President of Research Curt Long. “However, there is still every reason to believe that the FOMC will proceed with a 75-basis point increase to the fed funds rate target in two weeks.”
Additional Insights
Long noted other insights from the report worthy of note include:
- The outlook for future economic growth remained generally weak, with contacts noting expectations for further softening of demand over the next six to twelve months
- Price levels remained highly elevated, but nine Districts reported some degree of moderation in their rate of increase
- Most contacts expected price pressures to persist at least through the end of the year
The Beige Book report – a Fed publication on current economic conditions across the 12 districts – was based on information collected on or before August 29.
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