US Economic Growth and Job Market Slowed in July and August, Beige Book Reveals

According to the Federal Reserve’s Beige Book, growth in the US economy and job market experienced a slowdown in July and August. Many companies are now anticipating a broader deceleration in wage growth in the near term. The Federal Reserve Board (FRB) made this announcement on the 6th of the month.

The Beige Book states, “Most of the areas surveyed reported slow economic growth.” Additionally, businesses in nearly every area expressed renewed concerns about a general slowdown in short-term wage growth.

Despite overall job growth, last week’s US jobs report for August indicated that certain segments of the labor market were cooling down. The month-on-month increase in average hourly wages was the slowest since the beginning of last year.

The Beige Book highlighted a general decline in price inflation in most areas, particularly in the manufacturing and consumer goods sectors. However, respondents in some regions noted a sharp rise in property insurance premiums over the past few months.

Compiled by the Kansas City Fed through August 28, the Beige Book provides valuable insights based on information collected by the 12 Federal Reserve Banks.

(Updates with additional details starting in the third paragraph)

Growth in the US economy and job market slowed in July and August, according to the Federal Reserve’s Beige Book. It also found that many companies expect a broad slowdown in wage growth in the near term. The Federal Reserve Board (FRB) announced on the 6th.

“Most of the areas surveyed reported slow economic growth,” wrote the Beige Book.

In almost every area, businesses “renewed their previously unfulfilled expectations of a general slowdown in short-term wage growth.”

Last week’s US jobs report for August suggested parts of the labor market were cooling despite broad-based job growth. Month-on-month growth in average hourly wages was the slowest since the start of last year.

August US Employment Stats Increase 187,000 – Wages Decline, Unemployment Rate Rises to 3.8% (3)

“Most areas reported a general decline in price inflation, with the pace of the slowdown faster in the manufacturing and consumer goods sectors,” according to the Beige Book. At the same time, “in some areas, respondents indicated that property insurance premiums have risen sharply in the past few months,” the report said.

The Beige Book was compiled by the Kansas City Fed based on information collected by the 12 Federal Reserve Banks through August 28.

Original title: Fed’s Beige Book Shows Slow Activity, Hiring Growth (Correct) (excerpt)

(Updates with additional details starting in the third paragraph)

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