The survey of Fed’s “beige book” revealed that economic activity in the United States has barely changed in recent weeks, despite the fact that “consumer spending, especially on retail products, has decreased slightly.”
In its report, the Fed said business costs in some districts have risen at a faster pace recently due to rising import prices and rising costs of services such as insurance and health care.
“In most districts, more employers reported a reduction in staff through layoffs and natural leave,” says the report from the “Beige Book”, a periodic survey of economic actors carried out by the Central Bank on the country’s economic situation.
The report notes that Fed contacts cited “lower demand, greater economic uncertainty and, in some cases, increased investment in artificial intelligence technologies.”
Labor supply in sectors such as agriculture, construction and manufacturing was also “affected” in some districts due to changes in immigration policies, according to the Fed.
For now, many expect high uncertainty to slow economic activity, according to the US Central Bank.
