The US economy experienced “modest” growth in the months of July and August, as stated by the US Federal Reserve (Fed) in its Beige Book, a document that provides a detailed assessment of the economy by the 12 central banks. regions of the country.

Tourism spending has been the main driver of this better economic performance during the summer months, compared to recent years in which demand in this sector was “repressed” due to the pandemic.

However, other items the Fed collects, such as spending on non-essential items, have continued to slow and some central banks suggest that Americans may have depleted their savings, being forced to resort to more borrowing to support spending.

On the positive side of the balance are also the delays in the supply chain, which have been reduced in the last two months, which would make it possible to better satisfy existing orders.

The construction sector has also recovered, although there are difficulties in putting homes on the market at affordable prices, due to the increase in financing costs and insurance premiums.

Job growth was subdued across the country. Although hiring slowed down, most banks have indicated that labor market imbalances persist, as the availability of skilled labor remains low.

Looking ahead to the rest of the year, the Beige Book states that “the second half of the year will be different” when it comes to salary growth. Almost all entities suggest that wage growth will slow down in the short term.

Meanwhile, the increase in prices is also experiencing a scenario of general slowdown, with greater incidence in the manufacturing sector and consumer goods. However, it is worth noting the strong increases in property insurance costs in recent months.

From the point of view of companies, business margins have fallen as a result of the slowdown in input prices compared to sales prices.