Fed Beige Book Report: Limited Changes in Economic Activity

Fed's October 2023 Beige Book Report Released

The Federal Reserve has published its 'Beige Book' report for October 2023, outlining current assessments of the national economy.

Minimal Change in Economic Activity

The report, prepared with data from the Fed's 12 districts, emphasizes that overall economic activity has shown very little change since the last report. Three regions reported slight to moderate increases, five regions maintained a stable situation, and four regions recorded a slight slowdown.

Decline in Consumer Spending

In particular, a slight decline in consumer spending on retail goods has been noted in recent weeks. It was reported that lower and middle-income households are seeking discounts and promotions due to rising prices and economic uncertainty.

Production and Employment Status

The report indicated that manufacturing activity varied by region, with high tariffs and decreasing overall demand making working conditions more difficult. Employment levels remained largely stable, but overall demand for labor was noted to be weak. Weak demand and increased economic uncertainty have encouraged employers to reduce their number of employees through layoffs.

Increase in Input Costs

The report highlighted the rapid rise in prices, noting that many regions experienced increases in input costs in areas such as insurance, healthcare services, and technology solutions, as well as rising import costs. While some firms have been observed trying to keep their sales prices stable to maintain market share, it was indicated that some companies in the manufacturing and retail sectors have fully passed on the increasing costs to customers.