Fed Beige Book: Economic Outlook Remains Broadly Positive as Uncertainty Rises

According to Jin10, the Federal Reserve's Beige Book said U.S. economic activity has grown moderately since early July, with 10 of the 12 Federal Reserve districts reporting slight to moderate growth and two districts unchanged. Consumer spending rose slightly, but consumers became more price-sensitive, while high-end spending remained strong; auto sales were weak due to soft confidence, high oil prices, and rising financing costs. Manufacturing activity recovered in most districts, with some saying demand for defense and data center-related orders was strong. Job growth slowed and was only slight overall, with labor demand relatively firm in manufacturing and construction but weaker in retail and hospitality. Most districts reported moderate price increases, and cost pressures from energy, transportation, raw materials, and tariffs remained. Businesses expected the overall economic outlook to stay broadly positive, while remaining focused on uncertainty from energy prices, policy, and international conflicts.