Fed Beige Book: Fewer New Job Postings Among a Spike in Consumer Spending

Posted July 17, 2024

The Federal Reserve Board released the Beige Book for July and it shows the Tenth District is cooling in hiring activity with a robust bump in consumer spending.

Banks in the Tenth District, or the Federal Reserve Bank of Kansas City, reported loan demand was mostly unchanged across all categories. Several bankers noted that loan quality deteriorated broadly, but only modestly, according to the Fed.

The Tenth District had a slowdown in hiring activity with fewer new job postings and reduced staff hours. Still, the employment levels remain stable, according to the Fed.

Manufacturing firms reported the highest decline in staff hours.

Furthermore, the overall business activity in the Tenth District slowed due in part to a slump in the manufacturing sector. Manufacturing businesses reported slowing demand and moderate declines in production, new orders and backlogs. Meanwhile, service sector businesses such as hotels and restaurants experienced robust growth in consumer discretionary activity.

Household consumer spending rose notably. In addition to hotels and restaurants, retail spending also experienced a rise in activity, albeit at a slower pace.

Other sectors like real estate and construction had an uptick in sales and listings for commercial properties across the Tenth District, however, could be affected by price corrections. The energy sector’s activity continued its pace at a moderate decline. While agriculture activity remained mostly unchanged.

View the full Federal Reserve Board Beige Book July 2024 report, here.