Fed Beige Book Shows Little Change in US Economic Activity

Economic Activity & Consumer Spending - Economic activity slowed, and hiring remained flat, indicating a cautious approach from companies [3] - Consumer spending shows a bifurcated trend, with high-income consumers driving luxury spending while lower and middle-income households seek discounts due to rising costs [6] - Concerns exist about consumer spending slowing down, with consumers starting to pull back [4] - The Beige Book indicates that companies are increasing the pace of layoffs and adopting more technology [4] Inflation & Pricing - There are signs of tariff pass-through in certain goods categories, impacting prices [4][10] - The expectation is that inflation will eventually level off [10] - AI prices are rising slightly due to tariffs [4] Automotive Industry - Auto sales were driven by consumers trying to purchase electric vehicles before the end of the tax credit in September [5] Data & Economic Indicators - The Atlanta Fed's GDP now number for the third quarter is approximately 38% [5] - High-income households are increasingly making up the share of overall consumer spending, accounting for about 50% [7]