The Strategist

U.S. economic activity shows growth in the second half of summer

09/07/2023 - 10:38

According to the Beige Book, a summary of the Federal Reserve's (Fed) remarks on the nation's economic situation, the economic activity in the US increased moderately in July and August compared to the prior report, which covered the time period from May through July.

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The report states that "according to contacts from most districts, economic growth was moderate in July and August."

The survey showed that most districts saw a general slowing in the rise of consumer expenditure. The sources also noted that consumers in some counties have started to rely on borrowed money to support expenditure. Due to the increased demand for travel, tourism spending was bigger than anticipated.

Industry sources saw a reduction in supply chain delays in some areas, but banking sector interlocutors had conflicting opinions about the rise in credit demand. Energy-related activities, meanwhile, remained virtually unchanged.