Thursday, May 12 2022

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US economic activity has grown at a “moderate” pace since mid-February amid strong inflationary pressures, according to the federal government. Reservations beige bookwhich comes out every six weeks.

Strong demand but limited supply: Manufacturing activity was strong in most Fed districts, although supply chain disruptions, a tight labor market and rising input costs continue to put pressure on business capacity to respond to demand.

As real (inflation-adjusted) disposable income growth contracts to record highs, some Fed contacts noted “early signs that the sustained pace of wage growth has begun to slow,” said Fed. declared the Beige Book.

Consumer spending accelerated among retail and non-financial businesses as companies passed on higher input costs.

For prices, “inflationary pressures have remained strong since the last report, as companies continue to rapidly pass on rising input costs to customers,” according to the Beige Book. Several districts cited price increases for energy, metals and agricultural products following Russia’s invasion of Ukraine.

MeanwhilesSome districts noted that rising prices have started to weigh on sales, while businesses in most districts expect inflation to continue in the coming months.

Earlier this week, Freddie Mac said US home buying demand will remain strong.

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