The US Federal Reserve (Fed) reported that economic growth was “moderate” in July and August and employment growth slowed across the country.
The Fed published the August issue of the “Beige Book” report, which includes essments of the current situation in the American economy. The report, which was prepared with analyzes from the bank’s 12 branches, stated that economic growth in most regions was “moderate” in July and August.
The report pointed out that consumer spending on tourism was stronger than expected, but other retail spending continued to slow down, especially in non-essential products.
“Some regions have pointed to reports suggesting that consumers may have exhausted their savings and will rely more on borrowing to support spending,” the report said. expression was used.
“THE HOUSING INDUSTRY IS EXPERIENCED”
In the report, which stated that delays in the supply chain have improved in some regions, it was noted that existing orders could be met better. In the report, it was stated that the stock of housing for sale remained limited in almost all regions, pointing to the supply shortage in the housing sector, and new housing constructions accelerated in this direction, but affordable housing construction in many regions became more and more difficult due to high financing costs and increasing insurance premiums.
In the report, which stated that bankers in different regions gave mixed signals about the increase in loan demand, it was stated that most bankers reported that consumer loans increased and that high rates of consumer loans could not be paid in some regions.
“PRICE INCREASE SLOW GENERALLY”
In the report, which also includes evaluations on the labor market, it was stated that the increase in employment throughout the country has decreased.
The report said that despite the slowdown in hiring, labor market imbalances persist as skilled workers and job applicants remain limited in most regions.
Noting that many people think that “the second half of the year will be different” regarding wage growth, the report noted that businesses in almost all regions reiterated their previously unrealized expectations that wage growth will slow down drastically in the near term.
Regarding price increases, the report said, “Most regions reported that price growth has slowed overall, with a faster slowdown in the manufacturing and consumer goods sectors.” essments were included.
In the report, it was stated that the increase in input prices slowed down less than sales prices due to the efforts of enterprises to overcome cost pressures in some regions, and as a result, profit margins decreased in many regions. (AA)
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