In its Beige Book report, compiled by the Boston Fed and released minutes ago, the Fed said the U.S. economy grew slightly from late May to early July. However, the overall economic outlook was assessed as neutral to slightly pessimistic.
In the report, only two of the Fed’s 12 districts indicated that they expect an increase in economic activity in the coming period, while the remaining districts predicted that economic activity would either maintain current levels or weaken slightly.
Price increases continued nationwide. Seven regions described price increases as moderate, while five reported a more modest pace of price growth. This pattern was generally consistent with the previous Beige Book report.
According to the Fed’s Beige Book report, business uncertainty remains high, leading to continued caution. Non-automotive consumer spending declined in most regions, while car sales declined slightly due to tariffs. The tourism sector performed mixed, manufacturing weakened slightly, and non-financial services performed consistently but mixed.
Loan amounts increased slightly in most regions. The construction sector slowed, partly due to rising costs, and residential and non-residential sales were generally flat. The agricultural sector remained weak, and the energy sector saw a slight decline. The labor market saw slight growth overall. One region saw moderate growth, six regions saw slight growth, three regions were unchanged, and two regions saw a slight decline. Employment remained cautious due to economic and political uncertainties. Some companies increased investments in automation and artificial intelligence to reduce the need for workers. Wage increases were generally modest, ranging from flat to moderate. Layoffs were limited and more common in manufacturing.
*This is not investment advice.