The Federal Reserve Bank of Boston has released its latest Beige Book report, revealing trends in economic activity across various districts. The report, which reflects conditions as of the week ending July 7, gives a hazy economic picture with both bright and dark economic fortunes. Some districts are seeing a boom in development, others foresee a standstill or even a decrease.
Based on their analysis, they found that prices increased in all 16 measured districts. Interestingly, seven districts labeled this price appreciation as moderate, and five districts even went so far as to call it modest. This pattern is similar to the last Beige Book report, which echoed just such a characterization of inflationary price growth.
Overall, the report paints the picture of economic activity making a modest rebound from late May into early June. Notwithstanding this rosy increase, the macro picture is flat to mildly negative. Just two districts were optimistic and looking forward to growth in activity. At the same time, most expect no change or only a modest softening in their economic situation.
The Beige Book is an indispensable bellwether of our nation’s economic well-being. It’s a treasure trove of useful tips, based all around anecdotal information collected from businesses and other intel in districts across the state. The latest inflation report underscores persistent inflationary pressures that will weigh on consumer spending and business investment in the months ahead.