Fed’s Beige Book indicated that U.S. economic activity was largely stagnant over the past period, with most Districts reporting “little or no change”. Across the board, consumer spending was described as “flat to declining” as wages failed to keep pace with rising prices. Uncertainty and tariffs were frequently cited as additional drags on sentiment.
Employment trends also remained subdued, with 11 of the 12 Districts reporting little or no change in job levels and one District citing a modest decline. On prices, most Districts characterized inflation as “moderate or modest”, though two noted strong input cost increases that outpaced selling prices. Nearly all pointed to tariffs as a key driver of higher costs. Looking ahead, firms widely expect prices to continue rising, with three Districts warning the pace of increases could accelerate further.
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