The latest Beige Book, released on October 28, 2024, provides an overview of the economic conditions across various Federal Reserve Districts. According to the report, overall economic activity was largely unchanged. Employment levels remained stable, with wages experiencing moderate increases. Prices saw a slight rise, though certain sectors continued to face isolated cost pressures.
Retail and tourism were among the sectors showing moderate gains, particularly in international travel. However, these sectors still experienced only slight growth as consumers displayed increased price sensitivity. Manufacturing revenues declined slightly due to weak demand across most firms, while software and IT services maintained steady demand and revenue levels.
In terms of labor markets, employment figures were flat except for seasonal adjustments. Wages increased moderately. In Cape Cod's retail and hospitality sectors, summer hiring benefited from an influx of short-term visas for foreign workers and a larger supply of domestic seasonal workers. Meanwhile, Boston hotels reported a stabilization in labor supply despite an ongoing hotel worker strike.
Price trends indicated minor increases overall. Most manufacturers maintained steady output prices despite rising healthcare costs or offered discounts due to lower input prices. Retail prices remained stable despite some input cost pressures.
The retail and tourism sectors reported slight revenue growth recently. Airline passenger traffic through Boston rose moderately year-over-year, with international travel exceeding 2019 levels by over 15%. Hotel occupancy in Greater Boston also saw modest increases compared to August 2023.
Manufacturing revenues decreased slightly from the previous quarter as most firms faced weak demand. However, some companies experienced strong year-to-date revenue growth compared to 2023 figures.
IT services maintained steady demand and revenue levels on average. One firm exceeded revenue expectations while another attributed a temporary dip in earnings to its transition to a subscription-based model.
Commercial real estate activity was stable overall but fell short of seasonal expectations in office leasing within the Boston area due to weak demand from high-tech firms.
Residential home sales within the First District increased modestly from a year earlier but declined slightly from June when adjusted for seasonal factors.
For more detailed information about district economic conditions or past Beige Book content dating back to 1996 or earlier archives hosted by Minneapolis Fed since 1970 can be accessed through their respective websites.
Journalists seeking further insights can contact the media relations team at Boston Fed for connections with economists and other resources available at their disposal.
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