The US Federal Reserve (Fed) reported that there was a “slight to moderate” increase in economic activity in late November and December last year.
The Fed published the January issue of its “Beige Book” report, which includes assessments of the current situation in the American economy.
The report, prepared with analyzes from the bank’s 12 branches, stated that economic activity increased at a “slight to moderate” level in late November and December last year.
The report stated that consumer spending increased moderately, driven by strong “holiday season” sales that exceeded expectations in most regions.
The report noted that construction activities generally decreased and stated that high material and financing costs put pressure on growth in many regions.
The report stated that manufacturing activities decreased slightly and that manufacturers in some regions stocked up in anticipation of high tariffs.
The report stated that there was no change in real estate activity on the residential side, and noted that high mortgage (housing loan) interest rates continued to keep demand. It was reported that commercial real estate sales increased.
The report stated that conditions in the agricultural sector remain generally poor due to low farm incomes and weather-related challenges in some regions.
In the Fed’s report, “The number of those who were optimistic about the outlook for 2025 was greater than those who were pessimistic, but concerns were expressed in some regions that changes in immigration and tariff policies could negatively affect the economy.” statements were included.
The report stated that employment showed an increase on balance, and that wage growth increased to a moderate pace in most regions.
The report noted that prices generally increased modestly.
The report stated that prices are expected to continue to increase this year and pointed out that high tariffs have the potential to contribute to price increases.
Source: www.dunya.com
