US Fed survey: Price growth remains elevated, labor demand cools

WASHINGTON - Price growth in the United States remained elevated, though some easing was noted across several Districts, and there was a cooling in labor demand in several Districts, the US Federal Reserve said in a survey released on Wednesday.

National economic activity expanded modestly on net since the previous report, the Fed said in its latest Beige Book, a survey on economic conditions based on information collected from its 12 regional reserve banks.

Four Districts noted flat activity and two cited declines, with slowing or weak demand attributed to higher interest rates, inflation, and supply disruptions, the survey showed.

Retail spending was relatively flat, reflecting lower discretionary spending, and auto dealers noted sustained sluggishness in sales stemming from limited inventories, high vehicle prices, and rising interest rates.

Employment continued to rise at a modest to moderate pace in most Districts, according to the Beige Book.

Several Districts reported a cooling in labor demand, with some noting that businesses were hesitant to add to payrolls amid increased concerns of an economic downturn, the survey noted, adding that there were also scattered mentions of hiring freezes.

On price growth, significant input price increases were reported in a variety of industries, though some declines in commodity, fuel, and freight costs were noted, the survey showed.

Growth in selling prices was mixed, with stronger increases reported by some Districts and a moderation seen in others, it said, adding that looking ahead, expectations were for price increases to generally moderate.