Fed's Beige Book Says U.S. Economic Activity Rose Slightly
(RTTNews) - Economic activity rose slightly in most Federal Reserve districts, according to the central bank's Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts.
The Beige Book, released Wednesday afternoon, said three regions exhibited modest or moderate growth that offset flat or slightly declining activity in two others.
"Though growth in economic activity was generally small, expectations for growth rose moderately across most geographies and sectors," the Fed said. "Business contacts expressed optimism that demand will rise in coming months."
Consumer spending was described as generally stable, although the Fed said many consumer-oriented businesses across districts noted further increases in price sensitivity among consumers.
The Fed subsequently said prices rose only at a modest pace, as both consumer-oriented and business-oriented contacts reported greater difficulty passing costs on to customers.
Ahead of the release of the Labor Department's closely watched monthly jobs report on Friday, the Beige Book said employment levels were flat or up only slightly across the Fed districts.
While hiring activity was subdued as worker turnover remained low and few firms reported increasing their headcount, the Fed said the level of layoffs was also reportedly low.
The Beige Book is typically released two weeks ahead of the Fed's next monetary policy meeting, with the next meeting scheduled for December 17-18.
CME Group's FedWatch Tool currently indicates a 75.5 percent chance the Fed will lower interest rates by another 25 basis points
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