MNI BRIEF: US Economy, Inflation Slowed in Nov- Beige Book

U.S. economic activity and the pace of price increases slowed in November, the Federal Reserve said Wednesday in a report summarizing recent conversations with businesses and community groups.

Activity was "flat or up slightly" from the last Beige Book report six weeks ago, while down from the modest average pace of growth in the prior period. Consumer prices rose at a "moderate or strong pace" in most regions, but "the pace of price increases slowed on balance, reflecting a combination of improvements in supply chains and weakening demand," the Beige Book said.

Employment grew "modestly" as labor demand weakened. Firms reported scattered layoffs and some "expressed a reluctance to shed workers in light of hiring difficulties, even though their labor needs were diminishing." Wages increased at a moderate pace, but "some relaxation of wage pressures" was seen. "Opinions about the outlook pointed to stable or slowing employment growth and at least modest further wage growth moving forward," the Beige Book said. (See: MNI INTERVIEW: US Wage Pressures Likely To Be Longer Lasting)