Economist's Insights

Fed Beige Book Shows Consistent Wage Pressure, Slightly Softer Economic Growth

Jul 12, 2017

The July edition of the Fed’s Beige Book said economic growth ranged from “slight to moderate” across the Fed Districts, a marginally weaker characterization than the “modest or moderate” growth in the May report. The report said, “Consumer spending appears to be rising across a majority of Districts, …However, many Districts noted some softening in consumer spending, particularly in auto sales.” The discussion also said “labor markets tightened further”, creating a shortage of workers in some cases, and wage growth remained “modest to moderate.” However, price pressures remain only modest. The details have changed some since May but the plot of okay economic growth, a tightening labor market with some noticeable wage gains, but only modest inflation pressures remains the same.