Fed’s Beige Book Shows Economic Slowdown as Consumers Pull Back
- Spending on discretionary items fell as price sensitivity rose
- Labor demand continued to ease, though market still ‘tight’
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US economic activity slowed in recent weeks as consumers pulled back on discretionary spending, the Federal Reserve said in its “Beige Book” survey of regional business contacts.
“Sales of discretionary items and durable goods, like furniture and appliances, declined, on average, as consumers showed more price sensitivity,” according to the report released Wednesday. “Travel and tourism activity was generally healthy.”