The latest Federal Reserve (FED) Beige Book survey shows that the U.S. economy has shown a moderate expansion since the beginning of the year, but consumers' sensitivity to rising prices has increased significantly。

A report released on Wednesday (March 7) showed that U.S. economic activity has increased slightly since the beginning of January, with eight jurisdictions reporting small to moderate increases, three others remaining unchanged, and only one jurisdiction experiencing a slight slowdown in growth.。

And consumer spending, particularly on retail goods, has declined slightly in recent weeks.。At the same time, businesses are finding it harder to pass on increased costs to customers who are increasingly sensitive to price changes, as well as many manufacturers and construction companies whose material costs have fallen in recent weeks.。

The Beige Book, compiled by the Federal Reserve Bank of San Francisco, uses information collected as of February 26 or earlier, and the report includes anecdotes and commentary on the business environment in 12 Fed jurisdictions.。

Although employment continued to increase in most jurisdictions, growth was relatively flat。The report notes that, overall, the tightening of the labour market has eased further, with almost all jurisdictions highlighting some improvements in labour availability and staff retention.。

Many economists expect a slowdown in the U.S. labor market in 2024, and news of layoffs from some well-known companies confirms this prediction.。However, the Labor Department's January jobs report was unusually hot, with employers adding the most jobs in a year。

The Beige Book also noted that there have been several reports showing a slowdown in wage growth.。A slowdown in labor costs could further reduce inflationary pressures that unexpectedly rose earlier this year.。

Consumer and producer price indices rose sharply in January after cooling for several months, delaying investors' expectations of the timing of when the central bank will begin cutting interest rates。Currently, market participants expect the first rate cut to take place in June.。But Fed Chairman Powell recently said the central bank is in no hurry to cut interest rates and must ensure that inflation is gradually returning to its target value.。