The Fed published the May issue of its “Beige Book” report, which includes assessments of the current situation in the American economy. All 12 Fed regions reported continued economic growth, the report said.
The majority of the regions indicated a light or moderate growth, the report said, while 4 regions reported a moderate growth. The report stated that the growth rate of 4 regions has slowed down since the previous period.
Manufacturing sector growth continues in most regions, the report said, adding that rising interest rates, general inflation, Russia’s attack on Ukraine and disruptions caused by COVID-19 cases are the main concerns affecting household and business plans.
In the report, it was reported that growth expectations for the future decreased in 8 regions, while concerns about recession were expressed in 3 regions.
The labor market was described as tight, the report said, noting that all regions reported moderate or moderate growth in employment.
The report stated that many firms continued to work below capacity due to the shortage of workers, while firms continued to implement automation, offer greater job flexibility and increase wages.
Price increases were also evaluated, the report said, adding that most of the regions reported strong or robust price increases, especially for input prices.