U.S. economic activity expanded slightly in most districts, but elevated uncertainty and slower price growth cloud the outlook.
The Federal Reserve’s latest Beige Book reported economic activity grew at a slight to moderate pace in 11 of 12 districts through late May and June. One district saw no change. Business contacts anticipate continued expansion but flagged heightened uncertainty, particularly around fuel costs.
Employment rose modestly in five districts, while seven saw little or no change. Prices increased moderately overall, with nine districts reporting moderate growth and two noting robust gains. Price growth was steady or slower compared to the prior report.
The report underscores a resilient but cautious economy, with anecdotal feedback from businesses highlighting mixed signals on hiring, spending, and inflation pressures.