Fed Beige Book: Companies are pessimistic about growth

According to the Beige Book survey of the US Federal Reserve (Fed), which takes the pulse of the economy, US companies expect limited growth in the economy in the coming months.

The Fed published the January issue of the “Beige Book” report, which includes evaluations of the current situation in the American economy.

In the report, which was prepared with analyzes from 12 branches of the bank, it was stated that the general economic activity has not changed since November.

Pointing out that “low growth” is expected in the economy in the coming months, the report stated that consumer spending increased slightly as some retailers made stronger sales during the holiday period.

“Other retailers noted that high inflation continues to reduce the purchasing power of consumers, particularly in low- and middle-income households,” the report said. assessment was included.

In the report, which stated that in many regions, producers reported that activity decreased in a measured form, it was emphasized that supply chain disruptions were alleviated.

In the report, it was noted that the housing market continued to weaken and that the demand for mortgage (housing loan) continued to be weak. It was also stated in the report that high borrowing costs began to suppress commercial loans.

In the report, which pointed out that employment continued to grow at a moderate to moderate pace in many regions, it was stated that the labor supply increased in some regions, but companies continued to have difficulties in filling the vacant positions.

Price pressures remain high due to the steadily tight labor market, the report said.

In the report, which also mentioned price increases, it was noted that price increases in more than one region increased moderately or at a moderate rate, but this rate slowed down in many regions.

The report noted that price increases are expected to become even more restrained next year.