The US economy grew at a rate of 2.2 per cent in the third quarter, faster than previously thought, while wage growth earlier this year was revised down on Wednesday, adding to evidence that the economy is on track for a soft landing. This picture was reinforced by the latest Fed Beige Book survey of economic conditions, which offered little sign of a deterioration in the US economy during October and early November.Most regional Fed districts “reported continued moderate growth.” In spite of “continuing softness in automobile and housing-related sales”, most districts said customer spending increased over the period. Demand for services was seen as “healthy, according to most reports” while even manufacturing activity – which data suggests has seen some weakness – was “generally positive in most districts.”
The Beige Book highlighted continued pressure in the jobs market, with a number of districts continuing to report “that labour markets were tight, especially for high-skilled occupations.” Wage growth, though, was characterised as still “generally moderate.”