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New Beige Book documents slowed economic activity
The Federal Reserve released its Beige Book Wednesday, revealing slower economic activity since the previous report. Retail sales, including autos, remained mixed while travel and tourism activity was generally healthy. Sales of discretionary items and durable goods, like furniture and appliances, declined as consumers showed more price sensitivity.
“The Federal Reserve’s latest Beige Book documents a downshifting in growth, with consumption and inflation slowing and the labor market coming into better balance,” said NAFCU Vice President of Research and Chief Economist Curt Long. “These conditions should allow for a rate cut in the first half of 2024.”
According to the Beige Book, contacts in most districts noted prices remained elevated. Consumer credit remained fairly healthy but some banks noticed a slight uptick in consumer delinquencies.
In addition, the Beige Book reported job growth in most districts reported flat to modest increases in overall employment. The majority of the districts did report more applicants were available and several noted retention improved.
The Beige Book report – a Fed publication on current economic conditions across the 12 districts – is released eight times a year. The most recent report included information collected on or before Nov. 17.