The Federal Reserve’s Beige Book, published eight times a year, provides critical economic data and assessments for the 12 Federal Reserve Districts.
US Economy Shows Moderate Growth
In the last two months of the previous year, the US economy experienced moderate growth, with improvements noted in consumer spending, the housing market, and employment. However, a decline in the manufacturing and agricultural sectors was reported. The latest report highlights that consumer spending exceeded expectations, influenced by the holiday season.
Challenges in Construction and Finance
Construction activities faced setbacks due to high costs and financing expenses. Some manufacturers began stockpiling in anticipation of discussions around new tariff schedules. While the finance sector saw moderate credit growth, the risk of default increased for small businesses and lower-income groups.
Impact of Tariffs on the Economy
Prices increased modestly in most regions, although a few areas reported a rise in the pace of increases compared to the previous reporting period. Contacts in most regions expect potential tariffs on inputs to lead to price increases, with individual reports indicating that firms are proactively raising their prices.
The rise in prices due to tariffs is already affecting the economy negatively.
