The Fed’s latest Beige Book survey showed the US economy expanding at a modest pace, though growth was uneven across regions. Overall activity increased at a “slight to moderate pace” in seven of the twelve Districts, while five districts reported flat or declining conditions, up from four in the previous report.
Consumer spending rose only “slightly” overall, with some districts reporting continued weakness. Several regions noted that sales were restrained by economic uncertainty, greater price sensitivity among consumers, and reduced spending by lower-income households. Employment conditions were broadly stable, with seven districts reporting no meaningful change in hiring.
Manufacturing activity showed somewhat stronger momentum. Eight districts reported growth in factory output, with contacts citing rising new orders and stronger demand linked to data center construction and related energy infrastructure investments.
Meanwhile, price pressures continued to build moderately, driven by rising costs for insurance, utilities, energy and raw materials. Tariffs were cited by nine districts as contributing to higher input costs, although many firms said they were reluctant to fully pass these increases on to customers due to heightened price sensitivity. On balance, firms expected prices to rise at a “somewhat slower pace” in the near term.
