By Andrew Miller
The Federal Reserve’s latest read on the economy says it is still growing.
Eight times a year, the Fed publishes its Beige Book, a summary of current and expected conditions across the twelve Federal Reserve districts.
The information comes from what businesses on the ground report.
Ten of the twelve districts reported modest growth in recent weeks, with two reporting no change. Much of the strength came from manufacturing, where demand for goods rose on data center and defense spending.
That trend showed up in hiring: employment rose only slightly overall, with the largest wage increases concentrated in the skilled trades those firms are short of.
On the consumer side, spending barely rose. Travel was the exception, with tourism up and airlines reporting strong demand even as airfares climbed.
Nearly everywhere else, people pulled back. Auto sales were held back by lower confidence, high fuel prices, and the rising cost of financing a purchase.
In the Cleveland district, consumer spending fell for a fourth straight reporting period as higher fuel and food prices strained household budgets. Retailers tied the softer sales to those same pressures along with general uncertainty, and one noted the earlier boost from tax refunds had worn off.
With demand soft, some firms held wages steady, cut bonuses, or trimmed commissions.
Looking ahead, the businesses surveyed expected growth to continue, though their views were mixed. They pointed to uncertainty over higher energy prices, policy, and international conflict.
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