Economic Outlook Dims for US Firms, Federal Reserve Survey Reveals

The U.S. economy continued to expand at a slow pace in the first quarter of 2024; however, firms became more pessimistic due to reduced consumer demand and increased inflation, according to the Federal Reserve’s Beige Book report released on May 29. The Beige Book, which is published eight times a year, provides a summary of economic conditions across the Federal Reserve districts, highlighting their varied conditions across industries and regions. “Overall outlooks grew somewhat more pessimistic amid reports of rising uncertainty and greater downside risks,” the Beige Book reported. U.S. economic activity slightly increased from early April to mid-May, with travel and tourism showing significant growth nationwide. This growth was primarily driven by increased leisure and business travel. However, hospitality contacts expressed mixed expectations for the summer season. Demand for nonfinancial services increased, and transportation services activity varied....