US Economic Growth Shows “Slight to Moderate” Pace

(MENAFN) The US Federal Reserve disclosed on Wednesday that overall economic activity was rising at a "slight to moderate" pace across much of the nation.

According to the Federal Reserve's Beige Book, which incorporates analyses from the bank's 12 regional branches, economic activity expanded at a "slight to moderate" pace in eight of the 12 districts. Three regions showed no variation, while one experienced a moderate contraction.

"This marks an improvement over the last three report cycles where a majority of Districts reported little change," the report highlighted.

The publication observed that most banks recorded a "slight to moderate" boost in consumer expenditures, largely fueled by the holiday shopping period. Several regions noted more robust spending among high-income households, driven by greater purchases of luxury items, travel, tourism, and experience-oriented activities.

Conversely, the report emphasized that low- and middle-income consumers are becoming increasingly price-conscious and more reluctant to spend on non-essential goods and services.

Regarding employment, the Beige Book indicated that hiring remained largely stable, with eight out of 12 regions reporting no changes in workforce expansion.

The report further noted that businesses are mostly recruiting to fill existing vacancies rather than generating new roles and continue to encounter challenges in finding qualified staff, especially in engineering, healthcare, and other specialized technical sectors.

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