Inflation to go on in Oct; near-term US outlook stable or a bit weaker

20 Oct '23

1 min read

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Insights

US economic activity changed little over the last 45 says, the Federal Reserve's Beige Book said.
The report saw inflation persisting in October and the near-term economic outlook being stable or having slightly weaker growth.
“Overall, firms expect prices to increase the next few quarters, but at a slower rate than the previous few quarters," it said.

With a tight labour market continuing to ease and prices rising at a modest pace, US economic activity changed little over the last month and a half, according to the Federal Reserve’s (Fed) latest Beige Book, which saw inflation persisting in October and the near-term outlook for the economy being stable or having slightly weaker growth.

The Beige Book is a compendium of surveys, interviews and observations gathered across the central bank's 12 districts.

Modest growth was reported from five out of the 12 districts, three witnessed little or no change, and four reported modest contraction.

"Overall, firms expect prices to increase the next few quarters, but at a slower rate than the previous few quarters," the report said.

Retail sales and manufacturing are growing faster than expected in the country, employers have accelerated hiring, and underlying consumer prices rose last month at a 4.1 per cent rate from a year earlier—more than twice the Fed's 2-per cent target, government data shows.

Expectations of firms for which the holiday shopping season is a key driver of sales were mixed, the Beige Book noted.

ALCHEMPro News Desk (DS)

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