On Wednesday, July 13, US Eastern time, the Federal Reserve released its regional economic survey report, commonly known as the "beige book". The results show that economic activity has generally grown at a moderate rate since mid-May, with prices rising sharply in all regions; some areas see signs of a slowdown in demand, and some places point to concerns about the increased risk of recession.

The economy is expanding moderately, housing demand is weakening, and the supply chain is still a problem.

Overall, although the economy is still growing at a moderate rate, similar to the June beige book report, most of the reporting regions are negative about the prospects for future economic growth, and demand is expected to weaken further in the next six to 12 months.

From the perspective of industryNew car salesAffected by the continued decline in inventory levels, it is still depressed.Wine and travel industryShowing a healthy trend, the report says business and group travel have increased.Manufacturing industryActivity has been mixed, with many regions reporting supply chain disruptions and labour shortages continuing to hamper productionNon-financial service enterprisesDemand is stable or slightly increased, with some companies reporting higher-than-expected revenue; the market is concerned aboutEnergy productsDemand remains strong and oil and gas drilling activity picks up, but production is still constrained by labour supply and supply chain bottlenecks of key components.

In additionIn terms of housingDemand for housing weakened significantly as concerns about affordability increased, resulting in a non-seasonal decline in sales, resulting in a slight increase in inventories and a more modest price increase. The situation in commercial real estate has slowed and loan demand in most areas has been uneven; some financial institutions have reported an increase in customer use of revolving credit lines, while others have reported a rise in mortgage interest rates. demand for residential loans has weakened.

The price level has risen sharply, has slowed slightly recently, and is still at an all-time high.

The report points out that prices have risen sharply in all the areas covered by the report, although 3/4 of the regions pointed out that the prices of construction materials such as wood and steel have moderated.

The increase in the cost of food, goods and energy, especially fuel, remains significant amid widespread inflation, with some regions reporting that price inflation in these categories has slowed compared with recent months, but remains at historic highs. In addition, there are reports of concern about the cooling of demand in the future, with household disposable income falling and consumer spending slowing as a result of rising food and gasoline prices.

Generally speaking, the price pricing power of enterprises is relatively stable, and in some industries, such as tourism and hotels, enterprises have successfully passed on considerable price growth to customers. Most companies expect pricing pressure to last at least until the end of the year.

The labor supply has improved slightly and the job market remains tight.

Most regions reported that employment was growing at a moderate rate and that the overall situation remained tight. However, almost all regions noted a slight improvement in labour supply, particularly in manufacturing and construction, amid weaker demand for workers.

In terms of wage growth, 1/3 of regions said employers are considering or have paid bonuses to employees to offset inflation-related costs, while in two regions, workers are asking for higher wages to offset higher costs. 1/4 of regions said wage growth would remain high over the next six months, while a few pointed out that wage pressures are expected to subside later this year.

The Fed's beige book is published eight times a year based on a collection of regional economic conditions and prospects by the Fed's 12 regional banks.

Us inflation data exceeded expectations again on Wednesday, exacerbating the reversal of the yield curve. Intraday two-year Treasury yields rose further, with the 10-year Treasury yield pegged further to 22 basis points, the highest level since 2000.