US consumer spending rises slightly, says Fed's Beige Book

By Ovunc Kutlu

ISTANBUL (AA) - Consumer spending has increased slightly across the US, according to the Federal Reserve's Beige Book, which reports current economic conditions in each of the 12 federal districts in the nation.

While some retailers reported more robust sales over the holiday season, from November through December 2022, other retailers noted that high inflation continued to reduce consumers’ purchasing power, especially among low- and moderate-income households, noted the Beige Book that was released Wednesday.

"Manufacturers indicated that activity declined modestly on average, and, in many Districts, reported that supply chain disruptions had eased," it added.

The US housing market, on the other hand, continues to weaken with sales and construction declining across districts. In addition, commercial real estate activity slowed slightly on average, the Beige Book noted.

"Most bankers reported that residential mortgage demand remained weak, and some said higher borrowing costs had begun to dampen commercial lending," it also said.

Energy activity, however, continued to increase moderately, while agriculture conditions were generally unchanged or improving, according to the Beige Book.