Fed Beige Book Shows Little Change in US Economic Activity

Economic Activity - Economic activity is slowing, with hiring remaining flat according to the Beige Book [3][4] - Companies are increasing layoffs and adopting more technology, with rising prices attributed to tariffs [4] Consumer Spending - There is a trend of flat to declining consumer spending, particularly among lower and middle-income households who are seeking discounts [2][6] - High-income consumers are still spending on luxury items, making up about 50% of overall consumer spending [6][7] Automotive Sector - The automotive sector is experiencing a boost due to consumers purchasing electric vehicles before the end of tax credits [5] Inflation and Pricing - There are signs of tariff pass-through in certain goods categories, but economists expect inflation to eventually level off [10]