The U.S. Federal Reserve said in a report on Wednesday that U.S. economic activity was relatively flat at the start of the year and businesses were pessimistic about growth in the coming months.
Half of the Federal Reserve’s 12 local banks reported no change or a slight decline in economic activity in their districts, several others reported little or little growth, and one reported a significant decrease.
According to the central bank’s latest compilation of economic anecdotes from across the country, known as the Beige Book, some retailers believe that “high inflation will reduce consumer spending power, especially among lower and middle-income households.” pointed out that it continues to decline.”
The Federal Reserve said most regions benefited from a modest increase in consumer spending during the holiday season.Many business people find it more difficult to pass on higher costs to consumers “This suggests that consumers are more sensitive to price,” he said.
“Sales prices rose at a modest or moderate pace in most regions, but many said the pace of increase had slowed since the most recent reporting period,” the Fed’s report said.
The report included information collected up to January 9th.
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