Key Points
Overall Economic Activity
The Federal Reserve's Beige Book provides a comprehensive overview of economic conditions across various districts in the United States. In the Third District, economic activity has been expanding at a moderate pace, with notable growth in manufacturing and services. However, the labor market remains tight, with businesses facing challenges in hiring due to a shortage of skilled workers. Wage growth has been moderate, reflecting the competitive labor market. Price pressures have intensified, driven by rising costs in materials and transportation, which businesses are increasingly passing on to consumers. In the Fourth District, economic activity has also been expanding, albeit at a slower pace. The manufacturing sector has seen robust demand, particularly in defense and construction-related industries. However, supply chain disruptions and labor shortages continue to pose challenges. The labor market remains tight, with wage growth being moderate. Price pressures have been significant, with businesses reporting increased costs for raw materials and transportation, which are being passed on to consumers. The Fifth District has experienced steady economic growth, with strong performance in manufacturing and services. The labor market remains tight, with businesses reporting difficulties in filling positions, particularly in skilled trades. Wage growth has been moderate, reflecting the competitive labor market. Price pressures have been notable, with businesses reporting increased costs for materials and transportation, which are being passed on to consumers. In the Sixth District, economic activity has been expanding at a moderate pace. The manufacturing sector has seen strong demand, particularly in defense and construction-related industries. However, supply chain disruptions and labor shortages continue to pose challenges. The labor market remains tight, with wage growth being moderate. Price pressures have been significant, with businesses reporting increased costs for raw materials and transportation, which are being passed on to consumers. The Seventh District has experienced steady economic growth, with strong performance in manufacturing and services. The labor market remains tight, with businesses reporting difficulties in filling positions, particularly in skilled trades. Wage growth has been moderate, reflecting the competitive labor market. Price pressures have been notable, with businesses reporting increased costs for materials and transportation, which are being passed on to consumers. Overall, the Beige Book highlights a consistent theme of moderate economic expansion across districts, with challenges in the labor market and rising price pressures due to increased costs in materials and transportation. Businesses are adapting by passing on these costs to consumers, while wage growth remains moderate in response to the competitive labor market.
Labor Markets
The Federal Reserve's Beige Book provides a comprehensive overview of economic conditions across various districts in the United States. In the Third District, economic activity has been expanding at a moderate pace, with notable growth in manufacturing and services. However, the labor market remains tight, with businesses facing challenges in hiring due to a shortage of skilled workers. Wage growth has been moderate, and businesses are increasingly passing on higher input costs to consumers, leading to rising prices. In the Fourth District, economic activity has also been expanding moderately. The labor market is tight, with strong demand for workers, particularly in manufacturing and construction. Wage growth has been steady, and businesses are experiencing increased costs for materials and transportation, which are being passed on to consumers. Retail sales have been strong, supported by consumer spending, although there are concerns about the impact of higher prices on consumer confidence. The Fifth District has seen a modest increase in economic activity, with growth in manufacturing and services. The labor market remains tight, with businesses reporting difficulties in finding qualified workers. Wage growth has been moderate, and businesses are facing higher costs for materials and transportation. Retail sales have been steady, but there are concerns about the impact of higher prices on consumer spending. In the Sixth District, economic activity has been expanding at a moderate pace. The labor market is tight, with strong demand for workers, particularly in manufacturing and construction. Wage growth has been steady, and businesses are experiencing increased costs for materials and transportation. Retail sales have been strong, supported by consumer spending, although there are concerns about the impact of higher prices on consumer confidence. The Seventh District has seen a modest increase in economic activity, with growth in manufacturing and services. The labor market remains tight, with businesses reporting difficulties in finding qualified workers. Wage growth has been moderate, and businesses are facing higher costs for materials and transportation. Retail sales have been steady, but there are concerns about the impact of higher prices on consumer spending. Overall, the Beige Book highlights a consistent pattern of moderate economic growth across districts, with tight labor markets, moderate wage growth, and rising prices due to increased input costs. Businesses are adapting by passing on costs to consumers, but there are concerns about the potential impact on consumer spending and confidence.
Prices
The Federal Reserve's Beige Book provides a comprehensive overview of economic conditions across various districts in the United States. In the Third District, economic activity has been expanding at a moderate pace, with notable growth in manufacturing and services. However, the labor market remains tight, with businesses facing challenges in hiring due to a shortage of skilled workers. Wage growth has been moderate, and businesses are increasingly passing on higher input costs to consumers, leading to rising prices. In the Fourth District, economic activity has also been expanding moderately. The labor market is tight, with strong demand for workers, particularly in manufacturing and construction. Wage growth has been steady, and businesses are experiencing increased costs for materials and transportation, which are being passed on to consumers. Retail sales have been strong, supported by consumer spending, although there are concerns about the impact of higher prices on consumer confidence. The Fifth District has seen a modest increase in economic activity, with growth in manufacturing and services. The labor market remains tight, with businesses reporting difficulties in finding qualified workers. Wage growth has been moderate, and businesses are facing higher costs for materials and transportation. Retail sales have been steady, but there are concerns about the impact of higher prices on consumer spending. In the Sixth District, economic activity has been expanding at a moderate pace. The labor market is tight, with strong demand for workers, particularly in manufacturing and construction. Wage growth has been steady, and businesses are experiencing increased costs for materials and transportation. Retail sales have been strong, supported by consumer spending, although there are concerns about the impact of higher prices on consumer confidence. The Seventh District has seen a modest increase in economic activity, with growth in manufacturing and services. The labor market remains tight, with businesses reporting difficulties in finding qualified workers. Wage growth has been moderate, and businesses are facing higher costs for materials and transportation. Retail sales have been steady, but there are concerns about the impact of higher prices on consumer spending. Overall, the Beige Book highlights a consistent pattern of moderate economic growth across districts, with tight labor markets, moderate wage growth, and rising prices due to increased input costs. Businesses are adapting by passing on costs to consumers, but there are concerns about the potential impact on consumer spending and confidence.
Key Industry Sectors
The Federal Reserve's Beige Book provides a comprehensive overview of economic conditions across various districts in the United States. In the Third District, economic activity has been expanding at a moderate pace, with notable growth in manufacturing and services. However, the labor market remains tight, with businesses facing challenges in hiring due to a shortage of skilled workers. Wage growth has been moderate, and businesses are increasingly passing on higher input costs to consumers, leading to rising prices. In the Fourth District, economic activity has also been expanding moderately. The labor market is tight, with strong demand for workers, particularly in manufacturing and construction. Wage growth has been steady, and businesses are experiencing increased costs for materials and transportation, which are being passed on to consumers. Retail sales have been strong, supported by consumer spending, although there are concerns about the impact of higher prices on consumer confidence. The Fifth District has seen a modest increase in economic activity, with growth in manufacturing and services. The labor market remains tight, with businesses reporting difficulties in finding qualified workers. Wage growth has been moderate, and businesses are facing higher costs for materials and transportation. Retail sales have been steady, but there are concerns about the impact of higher prices on consumer spending. In the Sixth District, economic activity has been expanding at a moderate pace. The labor market is tight, with strong demand for workers, particularly in manufacturing and construction. Wage growth has been steady, and businesses are experiencing increased costs for materials and transportation. Retail sales have been strong, supported by consumer spending, although there are concerns about the impact of higher prices on consumer confidence. The Seventh District has seen a modest increase in economic activity, with growth in manufacturing and services. The labor market remains tight, with businesses reporting difficulties in finding qualified workers. Wage growth has been moderate, and businesses are facing higher costs for materials and transportation. Retail sales have been steady, but there are concerns about the impact of higher prices on consumer spending. Overall, the Beige Book highlights a consistent pattern of moderate economic growth across districts, with tight labor markets, moderate wage growth, and rising prices due to increased input costs. Businesses are adapting by passing on costs to consumers, but there are concerns about the potential impact on consumer spending and confidence.
Special Factors
The Federal Reserve's Beige Book provides a comprehensive overview of economic conditions across various districts in the United States. In the Third District, economic activity has been expanding at a moderate pace, with notable growth in manufacturing and services. However, the labor market remains tight, with businesses facing challenges in hiring due to a shortage of skilled workers. Wage growth has been moderate, and businesses are increasingly passing on higher input costs to consumers, leading to rising prices. In the Fourth District, economic activity has also been expanding moderately. The labor market is tight, with strong demand for workers, particularly in manufacturing and construction. Wage growth has been steady, and businesses are experiencing increased costs for materials and transportation, which are being passed on to consumers. Retail sales have been strong, supported by consumer spending, although there are concerns about the impact of higher prices on consumer confidence. The Fifth District has seen a modest increase in economic activity, with growth in manufacturing and services. The labor market remains tight, with businesses reporting difficulties in finding qualified workers. Wage growth has been moderate, and businesses are facing higher costs for materials and transportation. Retail sales have been steady, but there are concerns about the impact of higher prices on consumer spending. In the Sixth District, economic activity has been expanding at a moderate pace. The labor market is tight, with strong demand for workers, particularly in manufacturing and construction. Wage growth has been steady, and businesses are experiencing increased costs for materials and transportation. Retail sales have been strong, supported by consumer spending, although there are concerns about the impact of higher prices on consumer confidence. The Seventh District has seen a modest increase in economic activity, with growth in manufacturing and services. The labor market remains tight, with businesses reporting difficulties in finding qualified workers. Wage growth has been moderate, and businesses are facing higher costs for materials and transportation. Retail sales have been steady, but there are concerns about the impact of higher prices on consumer spending. Overall, the Beige Book highlights a consistent pattern of moderate economic growth across districts, with tight labor markets, moderate wage growth, and rising prices due to increased input costs. Businesses are adapting by passing on costs to consumers, but there are concerns about the potential impact on consumer spending and confidence.
Beige Book Impact
Economic Activity & Sentiment
The Federal Reserve's Beige Book provides a comprehensive overview of economic conditions across various districts in the United States. In the recent report, economic activity in the Ninth District, which includes Minnesota, North Dakota, South Dakota, and parts of Montana and Wisconsin, showed a slight increase. Employment levels rose modestly, with labor demand remaining positive, although wage growth was moderate. Consumer spending experienced a slight decline, while construction activity improved modestly. Manufacturing activity increased moderately, and agricultural conditions remained unchanged. Activity among minority- and women-owned business enterprises softened slightly. In the labor market, employment rose slightly since the last report, with surveys indicating positive hiring demand. However, many businesses were addressing turnover, particularly in the hospitality sector. Job openings edged lower but remained healthy. IT staffing contacts noted that artificial intelligence was not causing layoffs but was dampening the creation of new jobs. Some businesses faced challenges in finding labor, particularly foreign-born workers, which made staffing more difficult. Wage growth was modest, with surveys showing signs of positive but slowing wage growth. Some sectors, like hospitality and construction, reported weaker year-over-year wage growth. Prices increased moderately overall, with input price pressures intensifying. More than one-third of firms reported increasing prices to customers in September, with over half reporting increases in nonlabor input prices for the month. Manufacturing contacts reported strong pricing pressures, particularly for raw materials and transportation. Retail fuel prices increased notably, and prices received by farmers increased for several crops, while decreasing for others. Worker confidence in job security remained significant, although some sectors, like janitors and grocery store workers, faced challenges due to high office vacancy rates and reduced hours. Consumer spending was down slightly, with retail and hospitality firms reporting revenue declines. Some businesses cited restrained budgets, with clients noticing lower budgets overall. A ranch and home supply retailer in Montana observed that the average number of basket items had decreased while average basket costs had increased. Store sales in South Dakota were mixed, with no significant year-over-year changes. Vehicle repair shops noted that customers were prioritizing which problems to fix due to tighter budgets. In the services sector, activity decreased modestly, with firms reporting decreased orders in September. Financial services contacts reported increased recent activity. Higher input costs were compressing profit margins, with some businesses renegotiating terms to protect profitability. Construction activity rose modestly, with more firms reporting recent revenue increases than decreases. However, there was widespread concern over high and rising costs, with some clients unable to move ahead due to uncertainty and increased costs caused by tariffs and inflation. Commercial real estate remained flat overall, with office vacancy rates increasing but tenants signing longer lease terms. Retail vacancies were low in suburban markets but higher in urban markets. Residential real estate declined, with home sales down in most major District markets compared to a year ago. Manufacturing activity increased moderately, with industry contacts reporting an increase in orders and positive month-ahead expectations. However, manufacturing contacts generally reported negative impacts from recent trade conflicts with Canada. Agricultural conditions in the District were unchanged, with early indications pointing to a significant decrease in corn production and quality due to summer heat and drought. Soybean and wheat production were also expected to decrease. However, a recent rally in crop prices was welcome news to farmers. Oil and gas exploration activity increased modestly, with contacts noting that oil prices remained well above breakeven levels, boosting growth in profits and capital expenditures. Activity and investment in the oil and gas sector were expected to increase further in the next six months, despite uncertainty in the outlook for oil prices.
Labor Market Dynamics
The Federal Reserve's Beige Book provides a comprehensive overview of economic conditions across various districts in the United States. In the recent report, economic activity in the Ninth District, which includes Minnesota, North Dakota, South Dakota, and parts of Montana and Wisconsin, showed a slight increase. Employment levels rose modestly, with labor demand remaining positive, although wage growth was moderate. Consumer spending experienced a slight decline, while construction activity improved modestly. Manufacturing activity increased moderately, and agricultural conditions remained unchanged. Activity among minority- and women-owned business enterprises softened slightly. In the labor market, employment rose slightly since the last report, with surveys indicating positive hiring demand. However, many businesses were addressing turnover, particularly in the hospitality sector. Job openings edged lower but remained healthy. IT staffing contacts noted that artificial intelligence was not causing layoffs but was dampening the creation of new jobs. Some businesses faced challenges in finding labor, particularly foreign-born workers, which made staffing more difficult. Wage growth was modest, with surveys showing signs of positive but slowing wage growth. Some sectors, like hospitality and construction, reported weaker year-over-year wage growth. Prices increased moderately overall, with input price pressures intensifying. More than one-third of firms reported increasing prices to customers in September, with over half reporting increases in nonlabor input prices for the month. Manufacturing contacts reported strong pricing pressures, particularly for raw materials and transportation. Retail fuel prices increased notably, and prices received by farmers increased for several crops, while decreasing for others. Worker confidence in job security remained significant, although some sectors, like janitors and grocery store workers, faced challenges due to high office vacancy rates and reduced hours. Consumer spending was down slightly, with retail and hospitality firms reporting revenue declines. Some businesses cited restrained budgets, with clients noticing lower budgets overall. A ranch and home supply retailer in Montana observed that the average number of basket items had decreased while average basket costs had increased. Store sales in South Dakota were mixed, with no significant year-over-year changes. Vehicle repair shops noted that customers were prioritizing which problems to fix due to tighter budgets. In the services sector, activity decreased modestly, with firms reporting decreased orders in September. Financial services contacts reported increased recent activity. Higher input costs were compressing profit margins, with some businesses renegotiating terms to protect profitability. Construction activity rose modestly, with more firms reporting recent revenue increases than decreases. However, there was widespread concern over high and rising costs, with some clients unable to move ahead due to uncertainty and increased costs caused by tariffs and inflation. Commercial real estate remained flat overall, with office vacancy rates increasing but tenants signing longer lease terms. Retail vacancies were low in suburban markets but higher in urban markets. Residential real estate declined, with home sales down in most major District markets compared to a year ago. Manufacturing activity increased moderately, with industry contacts reporting an increase in orders and positive month-ahead expectations. However, manufacturing contacts generally reported negative impacts from recent trade conflicts with Canada. Agricultural conditions in the District were unchanged, with early indications pointing to a significant decrease in corn production and quality due to summer heat and drought. Soybean and wheat production were also expected to decrease. However, a recent rally in crop prices was welcome news to farmers. Oil and gas exploration activity increased modestly, with contacts noting that oil prices remained well above breakeven levels, boosting growth in profits and capital expenditures. Activity and investment in the oil and gas sector were expected to increase further in the next six months, despite uncertainty in the outlook for oil prices.
Inflationary Pressures & Pricing Power
The Federal Reserve's Beige Book provides a comprehensive overview of economic conditions across various districts in the United States. In the recent report, economic activity in the Ninth District, which includes Minnesota, North Dakota, South Dakota, and parts of Montana and Wisconsin, showed a slight increase. Employment levels rose modestly, with labor demand remaining positive, although wage growth was moderate. Consumer spending experienced a slight decline, while construction activity improved modestly. Manufacturing activity increased moderately, and agricultural conditions remained unchanged. Activity among minority- and women-owned business enterprises softened slightly. In the labor market, employment rose slightly since the last report, with surveys indicating positive hiring demand. However, many businesses were addressing turnover, particularly in the hospitality sector. Job openings edged lower but remained healthy. IT staffing contacts noted that artificial intelligence was not causing layoffs but was dampening the creation of new jobs. Some businesses faced challenges in finding labor, particularly foreign-born workers, which made staffing more difficult. Wage growth was modest, with surveys showing signs of positive but slowing wage growth. Some sectors, like hospitality and construction, reported weaker year-over-year wage growth. Prices increased moderately overall, with input price pressures intensifying. More than one-third of firms reported increasing prices to customers in September, with over half reporting increases in nonlabor input prices for the month. Manufacturing contacts reported strong pricing pressures, particularly for raw materials and transportation. Retail fuel prices increased notably, and prices received by farmers increased for several crops, while decreasing for others. Worker confidence in job security remained significant, although some sectors, like janitors and grocery store workers, faced challenges due to high office vacancy rates and reduced hours. Consumer spending was down slightly, with retail and hospitality firms reporting revenue declines. Some businesses cited restrained budgets, with clients noticing lower budgets overall. A ranch and home supply retailer in Montana observed that the average number of basket items had decreased while average basket costs had increased. Store sales in South Dakota were mixed, with no significant year-over-year changes. Vehicle repair shops noted that customers were prioritizing which problems to fix due to tighter budgets. In the services sector, activity decreased modestly, with firms reporting decreased orders in September. Financial services contacts reported increased recent activity. Higher input costs were compressing profit margins, with some businesses renegotiating terms to protect profitability. Construction activity rose modestly, with more firms reporting recent revenue increases than decreases. However, there was widespread concern over high and rising costs, with some clients unable to move ahead due to uncertainty and increased costs caused by tariffs and inflation. Commercial real estate remained flat overall, with office vacancy rates increasing but tenants signing longer lease terms. Retail vacancies were low in suburban markets but higher in urban markets. Residential real estate declined, with home sales down in most major District markets compared to a year ago. Manufacturing activity increased moderately, with industry contacts reporting an increase in orders and positive month-ahead expectations. However, manufacturing contacts generally reported negative impacts from recent trade conflicts with Canada. Agricultural conditions in the District were unchanged, with early indications pointing to a significant decrease in corn production and quality due to summer heat and drought. Soybean and wheat production were also expected to decrease. However, a recent rally in crop prices was welcome news to farmers. Oil and gas exploration activity increased modestly, with contacts noting that oil prices remained well above breakeven levels, boosting growth in profits and capital expenditures. Activity and investment in the oil and gas sector were expected to increase further in the next six months, despite uncertainty in the outlook for oil prices.
Consumer Spending & Credit
The Federal Reserve's Beige Book provides a comprehensive overview of economic conditions across various districts in the United States. In the recent report, economic activity in the Ninth District, which includes Minnesota, North Dakota, South Dakota, and parts of Montana and Wisconsin, showed a slight increase. Employment levels rose modestly, with labor demand remaining positive, although wage growth was moderate. Consumer spending experienced a slight decline, while construction activity improved modestly. Manufacturing activity increased moderately, and agricultural conditions remained unchanged. Activity among minority- and women-owned business enterprises softened slightly. In the labor market, employment rose slightly since the last report, with surveys indicating positive hiring demand. However, many businesses were addressing turnover, particularly in the hospitality sector. Job openings edged lower but remained healthy. IT staffing contacts noted that artificial intelligence was not causing layoffs but was dampening the creation of new jobs. Some businesses faced challenges in finding labor, particularly foreign-born workers, which made staffing more difficult. Wage growth was modest, with surveys showing signs of positive but slowing wage growth. Some sectors, like hospitality and construction, reported weaker year-over-year wage growth. Prices increased moderately overall, with input price pressures intensifying. More than one-third of firms reported increasing prices to customers in September, with over half reporting increases in nonlabor input prices for the month. Manufacturing contacts reported strong pricing pressures, particularly for raw materials and transportation. Retail fuel prices increased notably, and prices received by farmers increased for several crops, while decreasing for others. Worker confidence in job security remained significant, although some sectors, like janitors and grocery store workers, faced challenges due to high office vacancy rates and reduced hours. Consumer spending was down slightly, with retail and hospitality firms reporting revenue declines. Some businesses cited restrained budgets, with clients noticing lower budgets overall. A ranch and home supply retailer in Montana observed that the average number of basket items had decreased while average basket costs had increased. Store sales in South Dakota were mixed, with no significant year-over-year changes. Vehicle repair shops noted that customers were prioritizing which problems to fix due to tighter budgets. In the services sector, activity decreased modestly, with firms reporting decreased orders in September. Financial services contacts reported increased recent activity. Higher input costs were compressing profit margins, with some businesses renegotiating terms to protect profitability. Construction activity rose modestly, with more firms reporting recent revenue increases than decreases. However, there was widespread concern over high and rising costs, with some clients unable to move ahead due to uncertainty and increased costs caused by tariffs and inflation. Commercial real estate remained flat overall, with office vacancy rates increasing but tenants signing longer lease terms. Retail vacancies were low in suburban markets but higher in urban markets. Residential real estate declined, with home sales down in most major District markets compared to a year ago. Manufacturing activity increased moderately, with industry contacts reporting an increase in orders and positive month-ahead expectations. However, manufacturing contacts generally reported negative impacts from recent trade conflicts with Canada. Agricultural conditions in the District were unchanged, with early indications pointing to a significant decrease in corn production and quality due to summer heat and drought. Soybean and wheat production were also expected to decrease. However, a recent rally in crop prices was welcome news to farmers. Oil and gas exploration activity increased modestly, with contacts noting that oil prices remained well above breakeven levels, boosting growth in profits and capital expenditures. Activity and investment in the oil and gas sector were expected to increase further in the next six months, despite uncertainty in the outlook for oil prices.
Summary
Overall Economic Activity
Since the prior Beige Book, two of the twelve Federal Reserve Districts reported moderate growth in economic activity. Three Districts reported modest growth, while four reported slight growth, and three reported no significant change. Robust, broad-based growth in manufacturing led the moderate growth reported in the Dallas District. While not as robust, another six Districts reported modest to moderate growth from their manufacturing firms. The remaining five Districts noted little or no manufacturing growth. Reports on other sectors indicate little growth overall. Most Districts reported little or no change in overall consumer spending. Auto contacts noted flat to modestly lower sales in five of the six Districts that reported. Over half of the Districts noted that consumer spending was driven by high-income households. Even in Dallas, where District firms reported solid retail sales, there were "some reports of lower-income customers being more cautious with spending." Tourism continued to grow, but firms in the Boston, Minneapolis, and San Francisco Districts noted a decline in sales from Canadian tourists. Overall, most Districts reported that firms have maintained a positive economic outlook for the coming months. However, expectations tend to be for slight growth, weighted toward manufacturing and burdened by persistent uncertainties.
Labor Markets
Most Districts described little or no net change in overall employment levels. While three Districts described modest increases, five reported slight increases, and four reported no significant change. Overall, labor market conditions were little changed. Labor supply was generally adequate to meet demand; however, shortages persisted for specialized, technical, and skilled trade workers. Five Districts reported that some firms had either reduced staffing levels (through attrition), delayed hiring, or anticipated less job creation after increasing productivity by investing in AI. Five Districts described moderate growth in overall wages, four reported modest growth, and two reported slight growth. Several Districts noted that inflation has spawned additional wage pressure in the form of higher cost-of-living demands from individuals as well as challenges from rising benefit costs. Staffing contacts in the Boston District noted that workers were motivated to seek new jobs as wage increases lagged inflation.
Prices
Three Districts characterized overall price growth as robust, while eight noted that growth was moderate—and three of the eight noted that input price pressures were intensifying, if not already growing robustly. One District reported modest price growth. Moreover, four Districts reported that the pace of price increases picked up since the prior period. Higher oil prices permeated all District reports. Firms reported elevated diesel prices and noted that fuel surcharges were passing on increased costs throughout the supply chain. Contacts in multiple Districts also noted continued price pressure from other commodities, tariffs, and insurance. Consumer-facing firms noted tighter profit margins as price-sensitive customers continue to resist price hikes. Contacts are managing their margins with selective price hikes, targeted incentives, and menu changes that reduce their costs. Firms in several Districts cited persistent uncertainty around energy and tariffs and expect that prices will increase further in the coming months, as existing contracts expire, and firms must renegotiate hedge contracts for their own inputs and/or delivery contracts to their customers.
Highlights by Federal Reserve District
Boston
Economic activity expanded further, slightly. Consumer spending was flat, with an uptick in tourism spending but softer retail sales. Employment rose by a small margin, with wages up slightly on average. Home sales showed new weakness. Inflation was modest overall, but home heating oil prices rose sharply from a year earlier, raising concerns about heating costs for the winter.
New York
Economic activity increased slightly, led by strength in manufacturing. Rising costs and heightened uncertainty weighed on businesses and consumers. Employment was steady to up slightly and wage growth remained modest. Selling price increases picked up to the high end of the moderate range, while input prices continued to rise strongly. Consumer spending edged up.
Philadelphia
Business activity rose slightly this period, down from a modest increase in the prior period. Employment improved modestly, as both manufacturers and nonmanufacturers reported increased hiring. Wage inflation again grew modestly, and firm price inflation edged up to a moderate pace. Looking ahead, manufacturers have more widespread expectations for growth than nonmanufacturers.
Cleveland
Fourth District business activity increased modestly, with slight growth anticipated in the months ahead. Manufacturing demand rose moderately, while retailers continued to face dampened demand from higher fuel prices. Employment levels increased modestly, and wage pressures remained moderate. Nonlabor cost pressures remained strong, and selling prices grew robustly.
Richmond
The regional economy continued to grow moderately. Consumer spending remained solid amid continued tradeoffs due to higher gas prices. Hotels reported strong occupancy rates this cycle. Manufacturing activity was flat despite strength reported in some high-growth sectors and regions. Nonfinancial services reported modest growth while the remaining sectors reported little change in activity. Employment grew slightly and price growth remained moderate.
Atlanta
Economic activity grew modestly. Employment levels remained flat. Wages, costs, and prices rose moderately. Consumer spending and transportation activity expanded slightly. Residential real estate saw moderate growth and manufacturing was stable. Commercial real estate and lending rose at a modest pace. Energy activity grew moderately, and agriculture was mixed.
Chicago
Economic activity was flat on balance. Manufacturing demand rose modestly; employment was up slightly; consumer spending was flat on balance; construction and real estate activity and business spending declined slightly; and nonbusiness contacts saw no change in economic activity. Prices rose moderately, wages rose modestly, and financial conditions tightened modestly. Farm income expectations for 2026 were down slightly.
St. Louis
Economic activity has modestly increased. Employment was unchanged and wage growth remained moderate. Prices have risen at a robust pace and increases were widespread. Businesses expressed rising concerns about health-care costs. The outlook has remained unchanged.
Minneapolis
District economic activity increased slightly. Employment increased and wage pressures were modest. Prices increased moderately. Consumer spending fell slightly. Manufacturing activity increased moderately. Construction activity increased modestly, and commercial real estate was flat. Agricultural conditions were unchanged at low levels.
Kansas City
Business activity in the Tenth District continued to hold steady in a pattern of subdued conditions punctuated by pockets of strong demand. Rising diesel prices and shipping costs were a top concern, as both put more pressure on profit margins.
Dallas
Economic activity in the Eleventh District expanded moderately. Growth picked up notably in the manufacturing sector but eased in the banking and nonfinancial services sectors. Employment grew modestly and price growth was strong. Outlooks were mostly positive, though inflation and continued geopolitical and trade policy uncertainty remained headwinds.
San Francisco
Economic activity was broadly steady. Employers maintained staffing levels. Prices rose moderately, while wages increased only slightly. Retail sales softened somewhat, while demand for services varied by region and market segment. Conditions were mixed in manufacturing and stable in commercial real estate, but weakened slightly in agriculture, residential real estate, and financial services.
link
https://www.federalreserve.gov/monetarypolicy/beigebook202610-summary.htm