(Bloomberg) -- Economic activity was flat in most parts of the US since early September, the Federal Reserve said in its Beige Book survey of regional business contacts.
More than half of the US central bank’s 12 districts reported “slight or modest” growth in employment, while most districts said prices rose at a “slight or modest pace,” according to the report published Wednesday in Washington. Multiple districts also noted slowing wage growth.
“On balance, economic activity was little changed in nearly all districts since early September, though two districts reported modest growth,” the report said. “Reports on consumer spending were mixed, with some districts noting shifts in the composition of purchases, mostly toward less expensive alternatives.”
The report suggests the US economy continues to slow despite upside surprises in official statistics on employment, consumer prices and retail sales in September. Fed officials have recently cited such anecdotes as reasons to continue cutting interest rates despite the upturn in the latest numbers.
“The Federal Reserve’s latest Beige Book again presented a much softer picture of the US economy than hard data has,” Bloomberg economist Eliza Winger said in a note following the release. “We think the latest assessment of softer growth may ease market concerns the Fed may have to pause its rate cuts.”
In the Atlanta Fed’s district, which contains the areas of the country hit hardest by Hurricane Helene, the storm reportedly led to a decline in tourism, as well as “significant damage and losses” to farmers in south Georgia and parts of Florida.
The Beige Book also contained around 15 references to the November elections in the US as a source of uncertainty or a factor that was causing consumers and firms to delay investing, hiring and purchasing decisions.
The New York Fed compiled the latest edition of the Beige Book using information gathered on or before Oct. 11. The report includes anecdotes and commentary about economic conditions from businesses and other contacts in each of the Fed’s 12 districts.
(Updates with comment form Bloomberg Economics in fifth paragraph.)
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