FX.co ★ US economy stays afloat despite gloomy predictions

Many experts noted the slowdown in the US economy, but it has outplayed everyone. The US remains the global financial leader. In addition, from February through April 2024, economic activity in the US has increased considerably. At the same time, forecasts for economic growth are still full of cautious optimism, according to the Beige Book, which collects comments provided by Federal Reserve officials on the economic situation in the country.

According to the document, economic activity in the US has picked up slightly since the end of February 2024. “Ten out of twelve districts experienced either slight or modest economic growth—up from eight in the previous report, while the other two reported no changes in activity. The economic outlook among contacts was cautiously optimistic, on balance,” Beige Book reads.

This economic survey emphasizes that consumer spending in the United States almost did not increase. However, the situation in different districts as well as the data on product categories vary significantly. At the same time, manufacturing activity inched down, while housing construction and home sales advanced in most districts.

The Beige Book reports that the pace of US job growth was modest. Eight districts saw wages increase moderately, while the remaining four districts recorded small increases. However, there are still shortages of skilled labor, including machinists, and trade and hospitality workers.

Overall, the situation is relatively optimistic, but without any major achievements. However, there is no need to worry. As for the price increase in the US, it remains moderate. At the same time, raw material prices show a mixed picture, neither falling nor rising. Against this background, six states in the United States have noted a slight rise in energy prices. In the current situation, representatives of some districts believe that inflation in the country will remain stable and proceed at a slow pace.