Conclusions: The Fed’s Beige Book — Businesses Expect Economy to Weaken
Eight times a year the Federal Reserve publishes the Beige Book. It looks at how business looks at the economy. Sky-high inflation and interest rates that are rising significantly, have businesses worried.
The latest Beige Book was published last week. Though it’s published by the central bank, the information comes from the Fed’s 12 banks. The just published book said businesses have “growing concerns about weakening demand” and a “slowing or weak demand attributed to higher interest rates, inflation, and supply disruptions.”
Getting a little more specific, Reginald Chever who is the vice president and regional executive at the Federal Reserve Bank of Atlanta, said the Beige Book did have some positives to offer.
It found some businesses are seeing drops in the cost of commodities, fuel and freight.
“From a price perspective, it’s still a mixed experience,” Chever said.“A lot of our contacts mentioned that things are easing, but of course that varies by industry.”
Many businesses still continue to struggle and say things are not getting better. One grain company in St. Louis said it continues to wait 48 to 50 weeks for materials.
Another bit of good news in the report comes in the area of hiring. Many businesses around the country are saying it’s now easier to find people to fill empty positions.
Source link: The Wall Street Journal — https://on.wsj.com/3FgirM1