MNI BRIEF: Beige Book Sees US Growth Muted Amid Stable Labor

U.S. economic activity was changed little in recent weeks with muted demand for labor and input costs rising, according to the Federal Reserve's latest report on Current Economic Conditions published Wednesday.

"In most Districts, more employers reported lowering head counts through layoffs and attrition, with contacts citing weaker demand, elevated economic uncertainty, and, in some cases, increased investment in artificial intelligence technologies," the Fed's Beige Book said. (See: MNI POLICY: Fed Set To Keep Cutting Rates Despite Missing Data) 

Several district reports showed input prices increased at a faster pace due to higher costs for imports and services such as insurance, health care, and technology. "Tariff-induced input cost increases were reported across many Districts, but the extent of those higher costs passing through to final prices varied," the report said. 

"Some firms facing tariff-induced cost pressures kept their selling prices largely unchanged to preserve market share and in response to pushback from price-sensitive clients," the report said.