The Beige Book: Summary of Commentary on Current Economic Conditions by Federal Reserve District

National Summary - Overall economic activity remained mostly unchanged across the twelve Federal Reserve Districts, with four Districts reporting modest growth [12] - Consumer spending was flat to declining due to wages not keeping pace with rising prices, leading to promotions in retail and hospitality sectors [12] - Manufacturing firms are shifting to local supply chains and increasing automation, while data center construction is a noted strength in commercial real estate [12] Labor Markets - Eleven Districts reported little or no change in employment levels, with some firms hesitant to hire due to weaker demand [13] - Wage growth was modest across half of the Districts, while a reduction in immigrant labor availability was noted, impacting sectors like construction [13] Prices - Ten Districts reported moderate or modest price growth, with tariff-related increases being a common theme [15] - Many firms hesitated to raise prices due to customer sensitivity and competition, despite rising input costs [15] Highlights by Federal Reserve District - Boston: Economic activity expanded slightly, with flat consumer spending and moderate home sales [16] - New York: Economic activity declined slightly, with modest wage growth and strong input price increases [17] - Philadelphia: Business activity increased modestly, with steady employment levels and rising inflation expectations [18] - Cleveland: Business activity increased slightly, but demand remained flat due to uncertainty [19] - Richmond: Modest growth driven by consumer spending, with flat manufacturing activity [20] - Atlanta: Slight decline in economic activity, with moderate price increases and steady employment [21] - Chicago: Modest increases in consumer spending and manufacturing activity, with moderate price growth [22] - St. Louis: Unchanged economic activity, with concerns about immigration policies affecting labor supply [23] - Minneapolis: Slight contraction in economic activity, with a decline in consumer spending [24] - Kansas City: Generally flat economic activity, with modest wage pressures and input price growth [25] - Dallas: Modest rise in economic activity, with slow hiring and persistent price pressures [26] - San Francisco: Slight decline in economic activity, with stable lending and modest price increases [27] Federal Reserve Bank of Boston - Economic activity expanded slightly, with mixed results across sectors and modest price increases [28] - Consumer spending was flat, while manufacturing sales rose modestly, particularly in AI-related products [32] Federal Reserve Bank of New York - Economic activity continued to decline slightly, with modest wage growth and rising input prices [37] - Manufacturing activity picked up modestly, while service sector activity declined [45] Federal Reserve Bank of Philadelphia - Business activity increased modestly, with steady employment levels and moderate wage growth [53] - Firms reported concerns about rising tariffs and their impact on inflation expectations [62] Federal Reserve Bank of Cleveland - Slight increase in overall business activity, with flat consumer spending and modest wage pressures [73] - Manufacturers reported flat demand due to trade policy uncertainty [80] Federal Reserve Bank of Richmond - Continued modest growth in the economy, with increased consumer spending and flat manufacturing activity [88] - Wage growth remained moderate, with price growth picking up in retail and wholesale services [90] Federal Reserve Bank of Atlanta - Slight decline in economic activity, with steady employment and moderate price increases [21] - Consumer spending slowed, particularly in leisure travel [21] Federal Reserve Bank of Chicago - Modest increases in economic activity, with consumer spending and manufacturing activity rising [22] - Prices rose moderately, with financial conditions loosening slightly [22] Federal Reserve Bank of St. Louis - Economic activity remained unchanged, with concerns about immigration policies affecting labor supply [23] - Prices and wages increased at a faster pace recently [23] Federal Reserve Bank of Minneapolis - Slight contraction in economic activity, with a decline in consumer spending and manufacturing [24] - Wage pressures were moderate, with slight improvements in construction activity [24] Federal Reserve Bank of Kansas City - Economic activity was generally flat, with modest wage pressures and broad-based input price growth [25] - Expectations of sustained price pressures were noted [25] Federal Reserve Bank of Dallas - Modest rise in economic activity, with slow hiring and persistent price pressures [26] - Loan demand grew, but the housing market remained weak [26] Federal Reserve Bank of San Francisco - Economic activity edged down slightly, with stable lending activity and modest price increases [27] - Conditions in agriculture and retail trade eased slightly [27]