US Fed Report: Economic Activity Edges Up, Prices Rise Moderately

The US Federal Reserve has released its latest Beige Book report, showing that economic activity edged up in recent weeks. The report also found that prices rose moderately and employment increased slightly.

The Fed's report collects qualitative data from all 12 of its regional banks to give policymakers a real-time read on current conditions. It noted that the general outlook for the coming months is positive, but sentiment was mixed across sectors due to heightened uncertainty surrounding higher energy prices, policy, and international conflict.

The pace of price increases slowed in three districts, increased in one, and remained unchanged in eight. Consumer-facing contacts in some districts reported difficulty passing through input price increases due to heightened price sensitivity among customers.

The Fed's report also mentioned inflation 17 times, compared with 18 times in the previous report. Observations of weakness in the housing market were rife, with a window retailer noting that sales slowed as consumers were hesitant to invest in their homes amid inflation and rising mortgage rates.