The US economy contracted over the past 6 weeks, with recruitment slowing down, the Fed released its Beige Book survey on Wednesday saying. Consumers and enterprises are concerned about economic and policy uncertainties, as well as price hikes.

Since the previous report released on 23 April, US economic activity has slightly declined, the central bank noted. Economic and policy uncertainties increased across all regions, leading to cautious decision-making by businesses and households.

Related NewsAPI Crude Oil Stock Change for May/30 in United States is -3.3M, higher than the previous value of -4.236M. The forecast was -0.9M.
The Fed found that hiring conditions in most of the 12 districts remained largely unchanged, with seven districts reporting stable employment due to a general increase in the number of applicants and a decrease in turnover rates.

However, labor demand weakened across all districts, as evidenced by reducing working hours, overtime, hiring pauses and layoff plans. Some districts in certain regions experienced layoffs, but the scale was not pervasive.

Regarding inflation, the Beige Book said that US prices are rising at a moderate pace, with widespread reports indicating that customers expect costs and prices to rise at a faster rate in the future.

Related NewsJOLTs Job Openings for Apr in United States is 7.391M, higher than the previous value of 7.200M. The forecast was 7.10M.
In some regions, cost increases are described as strong, significant, or substantial, with companies passing on tariff-related costs to consumers expected to hike prices within 3 months.