- Six Districts reported little or no change in economic activity since the last report, while six indicated economic activity expanded at a modest pace
- Supply chain disruptions continued to ease
- Consumer spending generally held steady, though a few Districts reported moderate to strong growth in retail sales during what is typically a slow period
- Auto sales were little changed, on balance, though inventory levels continued to improve
- Several Districts indicated that high inflation and higher interest rates continued to reduce consumers' discretionary income and purchasing power, and some concern was expressed about rising credit card debt
- Amid heightened uncertainty, contacts did not expect economic conditions to improve much in the months ahead.
- Inflationary pressures remained widespread, though price increases moderated in many Districts. Full text
The full paragraph on rising prices is worth reading:
Inflationary pressures remained widespread, though price increases moderated in many Districts. Several Districts reported input costs rose further, particularly for energy and raw materials, though there was some relief reported for freight and shipping costs. Some Districts noted that firms were finding it more difficult to pass on cost increases to their consumers. Selling prices increased moderately in most Districts, with several Districts noting a deceleration. Home prices were generally flat or down slightly, while rents were reported to be steady or higher. Still, home prices and rents remained high, contributing to ongoing concerns about housing affordability. Looking ahead, contacts expected price increases to continue to moderate over the year.
Digging deeper, the regional comments on inflation are overwhelmingly positive, including this detail from St Louis.
This year, 63 percent of respondents reported an ability to pass on costs, down from 82 percent a year ago. Some industries expect to see the pace of price increases slow more than others, with retail respondents projecting a 4 percent increase this year, compared with 14 percent a year ago.
The one big exception was New York, which reported:
Inflationary pressures remained persistent. After a sustained period of moderation, business contacts reported that the pace of input price increases picked up in recent weeks. Of note, shipping charges, energy costs, and the prices of raw materials rose noticeably. Selling price increases also picked up after slowing for much of last year. Retailers and leisure & hospitality firms reported modest increases in their selling prices. Businesses expect both input and selling price increases to remain fairly widespread in the months ahead.