MNI BRIEF: Fed Beige Book Flags Flat Economic Activity

The Fed's Beige Book Wednesday reported "little or no change in economic activity" in January's reading of anecdotal reports from business contacts, with slowing price increases and little to no net change in overall employment.

"Six Districts noted that their contacts had reported slight or modest price increases, and two noted moderate increases. Five Districts also noted that overall price increases had subsided to some degree from the prior period, while three others indicated no significant shift in price pressures," the report said. "Districts also noted that increased consumer price sensitivity had forced retailers to narrow their profit margins and to push back in turn on their suppliers’ efforts to raise prices." (See: MNI INTERVIEW: Fed Might Not Cut At All In '24-Ex-Fed Economist)

"Overall, most Districts indicated that expectations of their firms for future growth were positive, had improved, or both."