MADRID, 6 September (EUROPA PRESS) –
The US economy posted “modest” growth in July and August, according to the US Federal Reserve (Fed) in its Beige Book, a document that provides a detailed assessment of the economy by the country’s 12 central banks.
Tourism spending was the main reason for this better economic performance in the summer months compared to the last few years when demand in this sector was “subdued” due to the pandemic.
However, other items the Fed takes, such as spending on non-essential items, have continued to slow, and some central banks believe Americans may have run out of savings, forcing them to borrow more to meet spending to support.
Also positive on the balance sheet are the delays in the supply chain, which have been reduced over the past two months, which would allow for better fulfillment of existing orders.
The construction sector has also recovered, although it is struggling to bring affordable housing to the market due to higher financing costs and insurance premiums.
MODERATE JOB GROWTH
Job growth was subdued across the country. Although hiring has slowed, most banks have warned that labor market imbalances persist as the availability of skilled labor remains low.
Looking ahead to the rest of the year, the Beige Book states that “the second half of the year will be different” when it comes to salary growth. Almost all companies expect wage growth to slow in the short term.
Meanwhile, the price rise is also experiencing an overall slowdown scenario, with stronger occurrences in manufacturing and consumer staples. What is remarkable, however, is the sharp increase in property insurance costs in recent months.
From the companies’ perspective, business margins have fallen due to the slowdown in input prices compared to selling prices.