🚀 June’s AI-picked stocks soar, with Adobe +18.1% in 11 days. Don’t miss July’s upcoming picks.Unlock full list

Economic outlook more pessimistic as consumers feel inflation pinch: Fed

Published 05/29/2024, 02:15 PM
© Reuters

Investing.com -- The economic outlook grew "somewhat more pessimistic" continued to expand in recent weeks, but consumers are starting to feel the inflation pinch as wage growth continues to normalize toward pre-pandemic historical averages, according to the Federal Reserve's Beige Book released Wednesday.

"National economic activity continued to expand from early April to mid-May," though overall outlooks "grew somewhat more pessimistic amid reports of rising uncertainty and greater downside risks,"  the Fed said in its Beige Book economic report, based on anecdotal information collected by the Fed's 12 reserve banks through May 20.

In a sign of cooling in the labor market, the majority of districts noted "better labor availability, though some shortages remained in select industries or areas," the Fed's beige book showed, and flagged the slowing wage growth. 

"Several districts reported that wage growth was at pre-pandemic historical averages or was normalizing toward those rates," the report added.

Against the backdrop of cooling wage growth, retail spending was flat to up slightly, reflecting "lower discretionary spending and heightened price sensitivity among consumers," according to the report. 

On the inflation front, meanwhile, prices increased at a modest pace over the period, the report noted, with "price growth is expected to continue at a modest pace in the near term."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.