Fashion
Most US Fed districts see higher inflation from late April to May
Economic activity increased at a slight to moderate pace for 10 of the 12 districts, while one reported a slight decline and one reported no change.
Wage growth generally remained modest to moderate and largely in line with inflation.
Most US Fed districts saw higher inflation from late April to late May due to energy costs linked to the Iran war, the Beige Book said.
Economic activity rose at a slight to moderate pace for 10 of the 12 districts.
A stagflationary combination of weakening consumer demand and rising cost pressures was noted across sectors.
Manufacturing activity rose at a modest to strong pace for nine districts.
“Higher-income households remained resilient and less sensitive to price increase, while middle-income households were described as ‘squeezing more life out of every dollar before deciding to spend it’, and low-income consumers showed greater financial strain,” the Beige Book said.
“Overall, there were reports of increased credit card usage, fewer retail visits, and stronger demand for necessities,” it found.
The report pointed to a stagflationary combination of weakening consumer demand and rising cost pressures across sectors.
Manufacturing activity increased at a modest to strong pace for nine districts and only one noted a slight decline from the previous period. Banking conditions were stable across most districts.
Energy activity increased in two of the markets, but districts reported that the outlook remains highly uncertain leading producers to hold off on materially expanding activity.
Business outlooks for the next six months were reported to have little change in anticipated growth, as elevated uncertainty and signs of weakening consumer spending weighed on sentiment.
Hiring was the strongest in the manufacturing sector in several districts.
Fibre2Fashion News Desk (DS)