Economic activity in seven Federal Reserve districts reported some level of increase while another five noted “flat or declining” activity – three more than in the prior reporting period, the Fed said in its July 2024 Beige Book released Wednesday.
The report, summarizing findings, said expectations for the future of the economy were for slower growth over the next six months due to uncertainty around the upcoming election, domestic policy, geopolitical conflict, and inflation.
The report includes information received on or before July 8 and summarizes comments from contacts outside the Fed system, the Fed noted.
The report points to a “slight to modest” pace of growth in a majority of districts. It noted modest to moderate wage growth in most districts; modest growth in prices; little change in household spending; and varied results for auto sales. (The Fed report says some district attributed lower sales in part to a cyberattack on dealerships and high interest rates.)
“Most Districts saw soft demand for consumer and business loans. Reports on residential and commercial real estate markets varied, but most banks reported only slight changes, if any, in recent weeks,” the report states.