MNI BRIEF: Growth Softer, Inflation Moderate - Fed Beige Book
MNI (WASHINGTON) - A growing number of Federal Reserve districts reported stalled or slowing economic activity, while business contacts indicated they expect inflation to stay at current levels or decline further in the near term, the Fed's Beige Book said Wednesday.
"Economic activity grew slightly in three Districts, while the number of Districts that reported flat or declining activity rose from five in the prior period to nine in the current period. Consumer spending ticked down in most Districts, having generally held steady during the prior reporting period," the report said.
Prices increased modestly but there is an expectation of moderate inflation pressures ahead.
"Looking ahead, contacts generally expected price and cost pressures to stabilize or ease further in the coming months," said the Beige Book report, which combines anecdotal evidence from across the Fed's 12 districts.
"Employment levels were steady overall, though there were isolated reports that firms filled only necessary positions, reduced hours and shifts, or lowered overall employment levels through attrition. Still, reports of layoffs remained rare." (See MNI INTERVIEW: Fed Prefers Gradual Rates Easing If Jobs Allow)