US economic activity rose slightly in recent weeks, Fed survey

WASHINGTON: US economic activity increased slightly in recent weeks, with slow growth seen continuing in coming months, according to a Federal Reserve report published on Wednesday that also offered further indications of abating inflation pressures.

“Overall economic activity increased slightly since late May,” the US central bank said in its latest “Beige Book” compendium of surveys and interviews conducted across its 12 districts through June 30. Five districts reported some growth, five reported no change and two showed modest declines.

“Overall economic expectations for the coming months generally continued to call for slow growth,” the Fed said.

Meanwhile, the report largely dovetailed with other recent data suggesting upward pressure on prices was softening.

“Prices increased at a modest pace overall, and several Districts noted some slowing in the pace of increase,” the report said, taking note of the differing extent to which businesses were able to pass their input cost increases to consumers.

Looking ahead, “Price expectations were generally stable or lower over the next several months.” Employment was also reported to have continued increasing “modestly,” and contracts in a number of districts said wage increases, which have remained higher than Fed officials believe are consistent with low inflation, were returning toward pre-pandemic levels.

The report was emblematic of an economy that is adjusting to the stiff interest rate increases the Fed has delivered, with impacts varying across regions and economic sectors.