There were signs that the labor market was cooling in nearly all regions of the country, according to a Federal Reserve survey released Wednesday.
The survey, known as the Beige Book, is a collection of anecdotes from business contacts collected before Jan. 8.
The contacts spoke of larger applicant pools, lower turnover rates, more selective hiring by firms and easing wage pressures.
Cooling wages, in particular, would help keep inflation on a downward path.
Fed officials will meet at the end of the month to plot interest-rate policy. They use the Beige Book to get a sense of conditions on the ground.
The business contacts seemed optimistic about future growth. Expectations were positive, had improved, or both, the survey found.
There were also many reports that consumers’ “price sensitivity” was forcing retailers to narrow their profit margins and put pressure on their own suppliers to keep prices contained.
The Beige Book often contains insights about activity across the country. Here are some nuggets from the latest report.
- In the San Francisco region, communities continue to grapple with a widespread shortage of affordable housing, leading to increases in homelessness and housing insecurity,
- In Dallas, many business contacts cited U.S. political uncertainty, with one saying it “weights heavily on business leaders’ minds right now,”
- Net farm income in the Chicago region was above average in 2023, but expectations for 2024 farm income were lower as prices started the year below break-even levels for many commodities.
- Home sales in Atlanta were slow to respond to the retreat in mortgage rates late last year.
- Trade volumes were down at Richmond ports, with higher shipping rates as carriers were dealing with issues at the Panama Canal and hostilities in the Red Sea.
- A wine producer in Richmond reported a 30% drop in sales as consumer demand dried up.
- A New York City tourism official said that the city was bustling over the holiday period, with visitor levels at normal pre-pandemic levels.
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