According to Federal Reserve’s Beige Book, “overall economic activity increased slightly since late May.” It added that “reports on consumer spending were mixed; growth was generally observed in consumer services, but some retailers noted shifts away from discretionary spending.” 

This Beige Book will be used for the next FOMC meeting on July 25-26. It mentioned that employment increased modestly and prices increased at a modest pace overall, with “ several Districts noted some slowing in the pace of increase.”

Key takeaways from the Beige Book: 

“Business activity expanded at a slight pace in recent weeks, with modest increases in employment and roughly even prices. Consumer spending increased by a small margin, as retail sales increased modestly and tourism was flat.”

“Manufacturers reported mixed results but sales growth was moderate on average.”

“Residential home sales increased slightly in May from the previous month but remained below seasonal norms.”

“The outlook was mostly optimistic among contacts outside of real estate.”

“Employment increased modestly and wage growth continued to moderate as labor market imbalances eased further.”

“Wage pressures were described as stable or, in most cases, declining, as wage growth rates continued to fall back to more moderate levels.”

“Prices were mostly stable, with some exceptions, as cost pressures abated further.”

“The outlook called for further moderation of pricing pressures moving forward