BeigeBook_20250305

National Summary - Overall economic activity rose slightly since mid-January, with six Districts reporting no change, four reporting modest or moderate growth, and two noting slight contractions [10] - Consumer spending was lower on balance, with solid demand for essential goods but increased price sensitivity for discretionary items, particularly among lower-income shoppers [10] - Manufacturing activity exhibited slight to modest increases across a majority of Districts, with concerns over potential trade policy changes [10] - Residential real estate markets were mixed, with ongoing inventory constraints and modest declines in construction activity for both residential and nonresidential units [10] Labor Markets - Employment nudged slightly higher on balance, with four Districts reporting a slight increase and seven reporting no change [11] - Job growth was noted in healthcare and finance, while declines were reported in manufacturing and information technology [11] - Labor availability improved for many sectors, although some sectors experienced a tight labor market [11] - Wages grew at a modest-to-moderate pace, slightly slower than the previous report, with easing wage pressures in several Districts [11] Prices - Prices increased moderately in most Districts, with several reporting an uptick in the pace of increase relative to the previous reporting period [14] - Input price pressures were generally greater than sales price pressures, particularly in manufacturing and construction [14] - Many Districts noted higher prices for food ingredients impacting food processors and restaurants, with substantial increases in insurance and freight transportation costs [14] Highlights by Federal Reserve District - Boston: Economic activity increased slowly, with a surge in home sales and modest price increases, but employment declined slightly [15] - New York: Regional economic activity was little changed, with slight employment growth and moderate wage growth [16] - Philadelphia: Business activity declined slightly, with continued slight employment growth and modest wage and price increases [17] - Cleveland: Business activity was flat, with consumer spending down and employment levels remaining unchanged [18] - Richmond: The regional economy grew modestly, with consumer spending increasing modestly and manufacturing activity unchanged [19] - Atlanta: The economy expanded at a modest pace, with steady employment and modest increases in wages and prices [20] - Chicago: Economic activity was little changed, with slight increases in employment and moderate wage growth [21] - St. Louis: Economic activity and employment were flat, with moderate price increases above expectations [22] - Minneapolis: Economic activity was steady, with moderate wage and price increases [23] - Kansas City: Economic activity was unchanged, with moderate price increases and steady employment levels [24] - Dallas: The economy expanded moderately, with steady employment and little change in wage and price growth [25] - San Francisco: Economic activity ticked down, with stable employment levels and slight price and wage growth [26] Banking and Finance - Banking activity was slightly higher among Districts that reported on it, with some banks noting a decline in demand for loans [10][51] - Small-to-medium-sized banks reported a decline in demand for all loan types, while commercial lending saw a slight increase [89]