The Federal Reserve’s latest Beige Book survey, released Wednesday, reported slight to moderate economic growth across the US in late November and December, driven in part by robust holiday sales.
According to the survey, economic activity increased across the twelve Federal Reserve Districts during the period, with consumer spending rising moderately, fueled by holiday sales that surpassed expectations. However, manufacturing activity experienced a slight decline, as some manufacturers stockpiled inventories in anticipation of higher tariffs.
The report also noted a modest increase in commercial real estate sales and a more optimistic outlook for 2025, despite ongoing concerns about immigration and tariff policies potentially affecting the economy. Employment ticked up slightly, with six districts reporting job growth, while six others saw no change. Wage growth also rose at a moderate pace, although there were signs of easing wage pressures.
Prices across the economy increased at a modest pace, with inflation ranging from flat to moderate growth, signaling contained upward price pressures.
In market reactions, the US Dollar Index (DXY) saw a minor decline, trading 0.04% lower at 109.06 at the time of writing.
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