Price pressures across the U.S. showed some signs of moderating while employment rose on balance, according to a recent survey by the Federal Reserve.
The Fed's Beige Book, which gathers anecdotal information about current economic conditions across the 12 Fed Districts, comes before the committee's July meeting on interest rates. The survey includes information that was collected on, or before July 6.
In late May and June, overall economic activity increased at a slight to moderate pace in 11 of the 12 Fed districts. Meanwhile, price growth was the same or slower in every district, according to the survey. Several districts noted elevated uncertainty in the outlook for fuel costs, stemming from the Middle East conflict.
Excluding employee compensation, costs increased for a variety of industries, including services, construction and manufacturing, and reflected in part higher costs for energy, transportation and raw materials. Some companies surveyed tied those cost increases to the conflict in the Middle East, while others mentioned tariffs.
Looking ahead, firms in some districts expected inflation to continue at its current pace, while others expected inflation to slow, due in part to falling fuel prices.
Regarding the labor market, employment rose on balance and in categories such as manufacturing, construction and retail. A few districts noted that firms had increased their usage of artificial intelligence either in the hiring and screening of potential employees, or to boost worker productivity. Wage growth was modest to moderate in most districts, while two districts saw only slight wage increases.
Write to Jessica Coacci at jessica.coacci@wsj.com
(END) Dow Jones Newswires
July 15, 2026 15:22 ET (19:22 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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