Economic Activity Shows Modest Improvement

The Federal Reserve's latest Beige Book, released on Wednesday, indicates a slight increase in U.S. economic activity from late May through early July. Out of the districts surveyed, five reported slight or modest gains, five saw flat activity, and two experienced modest declines. This marks an improvement over June's findings.

Employment Trends: A Mixed Bag

Employment levels increased very slightly overall, with one district noting modest increases, six observing slight increases, three remaining stable, and two recording slight declines.

Price Increases Across the Board

Prices rose in all districts, with seven describing the growth as moderate and five as modest. The Fed highlighted that while many firms passed some cost increases to consumers, others hesitated due to growing consumer price sensitivity, leading to squeezed profit margins.