Business contacts across the U.S. have reported only slight growth in economic activity in late May and June, with expectations of a continued slow pace, according to the Federal Reserve’s latest Beige Book report released on Wednesday.
The Beige Book report, which is a collection of anecdotes from contacts, was prepared for the Fed’s interest rate policy meeting in two weeks’ time. The report indicated that out of the 12 jurisdictions, five reported small or moderate economic growth, five had flat economic activity, and the remaining two experienced small or moderate declines in economic activity.
However, the job market remains healthy, with hiring becoming more targeted and selective, as stated in the report. Employee wages continued to rise, although at a more modest pace than in the past.
In terms of prices, the report noted a slowdown in the pace of price increases in June. Several jurisdictions reported that consumers have become more sensitive to price increases, limiting businesses’ ability to pass on higher input costs. On the other hand, some jurisdictions reported that strong demand allowed companies to maintain profit margins.
It is worth mentioning that this article is a translation from MarketWatch, an independent news source operated by Dow Jones, the parent company of The Wall Street Journal.