The Federal Reserve’s latest Beige Book said U.S. economic activity expanded at a modest pace since early July, according to a report cited by Jin10 and carried by PANews. Of the 12 Federal Reserve districts, 10 reported slight to moderate growth, while two saw no change.
Consumer spending rose slightly, though households became more price sensitive. High-end spending remained firm, but auto sales stayed weak as soft confidence, elevated fuel costs, and higher financing expenses weighed on demand. Manufacturing activity improved across most districts, and some regions reported solid demand tied to defense and data center orders.
Labor market growth slowed and overall hiring increased only slightly. Demand for workers held up in sectors such as manufacturing and construction, while retail and hospitality saw weaker labor demand. On prices, most districts reported moderate increases, with cost pressure still coming from energy, transportation, raw materials, and tariffs.
The report also highlighted the growing role of artificial intelligence and data center investment in current economic activity. The Beige Book mentioned artificial intelligence 19 times and data centers 25 times.
The Federal Reserve’s Beige Book showed that U.S. economic activity grew at a modest pace since early July, according to a Jin10 report cited by PANews. Among the 12 Federal Reserve districts, 10 reported slight to moderate growth, while two reported no change.
Consumer spending increased slightly, but consumers became more sensitive to prices. High-end spending remained strong. Auto sales were weak, pressured by soft confidence, high fuel prices, and rising financing costs.
Manufacturing activity picked up in most districts, and some regions said demand for defense- and data center-related orders was strong. Labor market growth slowed, with overall employment up only slightly. Demand for workers remained relatively solid in areas including manufacturing and construction, while retail and hospitality saw weaker demand.
Most districts reported moderate price increases. Cost pressure from energy, transportation, raw materials, and tariffs remained in place. Businesses were generally positive about the economic outlook, while continuing to watch uncertainty tied to energy prices, policy, and international conflicts.
The Beige Book’s references to artificial intelligence and data centers also pointed to the prominent role these two categories of investment are playing in current economic activity. The report mentioned artificial intelligence 19 times and data centers 25 times.
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