brics-news — The outlook on the economy “deteriorated a little” in recent weeks as consumer appetite for higher prices waned further and struggles to meet debt payments inch closer to pre-pandemic levels, according to the Federal Reserve’s released Wednesday.
While economic activity “was little changed overall in April and early May…[e]xpectations for future growth deteriorated a little,” the Fed said in its Beige Book economic report, based on anecdotal information collected by the Fed’s 12 reserve banks through May. 22.
The somewhat weaker economic outlook comes as the labor market appeared to show signs of cooling, with some contacts across districts reporting that they were pausing hiring or cutting jobs, the report said.
“Staffing firms reported slower growth in demand [and] wages grew modestly,” it added.
Prices rose moderately, according to the report, though the rate of increase slowed in many districts at a time when several districts noted “greater price sensitivity by consumers than in the prior report.”
Most districts, meanwhile, reported “stable or somewhat tighter” financial conditions, according to the report, with several districts noting a “rise in consumer loan delinquencies, which were returning closer to pre-pandemic levels.”