The U.S. economy experienced robust growth to kick off 2023, but the outlook for the coming months was not as strong, according to the latest Federal Reserve Beige Book report.
Overall economic activity was driven by “steady” consumer spending and stabilizing manufacturing activity following several months of contraction.
The Bureau of Economic Analysis (BEA) recently reported that personal spending rose by a higher-than-expected 1.8 percent in January. In addition, although they remained in contraction territory, the S&P Global and Institute for Supply Management (ISM) Manufacturing Purchasing Managers’ Index (PMI) readings rebounded to 47.3 and 47.7, respectively, last month.
The national housing market was “subdued” limited by “exceptionally low inventory,” although there was unexpected growth along the Eastern Seaboard, the Beige Book noted. Activity levels in the commercial real estate sector were also solid, although there was “ongoing weakness” in the office market to start the year….