Analysts at Nomura note that the July Beige Book of Fed indicated steady growth across most districts although tariff concerns remain elevated.
Key Quotes
“In particular, “manufacturers in all Districts expressed concern about tariffs and in many Districts reported higher prices and supply disruptions that they attributed to the new trade policies.” Most other anecdotal evidence was as expected: the labor market remains tight with “modest to moderate” wage growth but specific shortages (e.g., truck drivers) may be constraining growth.”
“The pass-through from rising input prices to consumer prices remains “slight to moderate” indicating that for now, firms may be absorbing higher input costs. Inflation overall remains “modest to moderate.” Taken altogether, the Beige Book is consistent with incoming data and our overall view of US economic activity. The national economy remains on firm ground (our Q2 tracking estimate is at 4.6% q-o-q saar) but concern around tariffs and US trade policy is acute.”
Share
