Beige Book: U.S. Economy Grows Modestly Amid Rising Prices

Employment conditions remained largely unchanged, with a few areas noting small increases in hiring. Despite this, many companies highlighted challenges in finding qualified workers to fill open roles. Some businesses resorted to limited layoffs as a way to manage costs, though overall job reductions were minimal. In certain regions, wage growth slowed, indicating that labor market pressures might be starting to ease.

Price increases were a common theme across the board, with businesses reporting moderate rises in costs. Many firms passed these higher input costs onto consumers, while others absorbed them to remain competitive. Looking forward, companies expect price pressures to continue at a manageable rate, with no major surges on the horizon. This steady climb in prices reflects ongoing inflationary trends, but the absence of sharp spikes offers some reassurance.

The survey also revealed regional variations in economic performance. Manufacturing activity declined in several districts, with businesses citing lower demand for durable goods as a key factor. On the other hand, the agriculture sector demonstrated resilience, bolstered by favorable conditions in some areas. These regional differences underscore the uneven nature of the current economic landscape, as industries and areas adapt to shifting market dynamics.