A majority of 12 Federal Reserve districts reported little or no change in economic activity since the prior survey period, the U.S. Federal Reserve said in its Beige Book released on Wednesday.
Of the four districts that differed, three reported modest growth, and one reported a moderate decline, the Fed said in its latest Beige Book, a survey on economic conditions based on information collected from its 12 regional reserve banks.
Consumers delivered some seasonal relief over the holidays by meeting expectations in most districts and exceeding expectations in three districts, including New York, which noted strong holiday spending on apparel, toys and sporting goods, the survey showed.
Districts continued to note that high interest rates were limiting auto sales and real estate deals; however, numerous contacts in various sectors cited the prospect of falling interest rates as a source of optimism, according to the survey.
In contrast, concerns about the office market, weakening overall demand and the 2024 political cycle were often cited as sources of economic uncertainty, the Fed noted.
On labor markets, seven districts described little or no net change in overall employment levels, while job growth was modest to moderate in four districts.
On inflation, six districts noted that their contacts had reported slight or modest price increases, and two noted moderate increases. Five districts also noted that overall price increases had subsided to some degree from the prior period, while three others indicated no significant shift in price pressures.
