Beige Book Release by the FED

The Federal Reserve’s Beige Book document, which provides valuable insights into the US economy, has been released. Here are the key points:

• Overall economic activity has seen a slight increase since mid-January, with optimistic expectations for future growth.
• Prices have risen modestly across most regions, although some areas reported a faster pace of price growth since the last report.
• Many contacts expect that tariffs will lead to price increases, with some companies already raising prices.
• The residential real estate market remains mixed, facing stock constraints and a slight decline in both residential and non-residential construction activity. Concerns have been raised about tariffs affecting lumber and other material costs.
• Increasing uncertainty regarding migration and other issues is impacting both current and future labor demand across various regions.
• Wages increased modestly to moderately, showing a slight slowdown compared to previous reports, with some regions experiencing easing wage pressures.
• Rising costs for eggs and other food ingredients are impacting food processors and restaurants.
• While overall consumer spending has declined, demand for essential items remains strong, with heightened price sensitivity for discretionary products, notably among lower-income consumers. Prices rose modestly, with some regions experiencing more rapid increases, and unusual weather conditions have weakened demand in leisure and hotel sectors.

> This is not investment advice.