Economy

Beige Book shows slight economic growth across US

May 31, 2024

Economic growth was modest, at best, from April through early May in most economic districts observed by the Federal Reserve.

The Fed’s May 29 Beige Book report said growth was slight or modest in 10 of its 12 districts and flat in the other districts since its last report.

“Overall outlooks grew somewhat more pessimistic amid reports of rising uncertainty and greater downside risks,” the Fed said in May’s report, noting that high interest rates and tight credit standards continue to stunt growth.

Economic activity increased slightly in the Chicago district, and contacts generally expect a similar growth rate for the next year.

Manufacturing in the Chicago district decreased slightly in the period. Steel volumes were flat, and a slowdown in the heavy machinery sector was noted by contacts.

Several manufacturers in the Chicago district “reported that high borrowing costs led them to delay planned expansions or to purchase used equipment rather than new,” according to the report.

In the Dallas district, in which the entire state of Texas is included, economic activity was flat or slightly up in the reporting period.

The outlook of manufacturers in the Dallas district worsened slightly, “weighed down by waning consumer confidence and election uncertainty.”

Activity in the Cleveland district expanded slightly, but contacts expect slower growth to continue in the coming months. At the same time, manufacturers in the district generally anticipate a slight increase in demand,

The Beige Book provides a summary of commentary on current economic conditions across the 12 Federal Reserve districts. It really is a book – it has a ton of information in it. Check out the report if you’d like to take a deeper dive into economic activity across the country.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.