Most Fed Districts See Little Change in Growth in Recent Period, Fed's Beige Book Shows

02:20 PM EDT, 09/03/2025 (MT Newswires) -- The US economy showed little or no change in most Federal Reserve districts over the recent period, the Federal Reserve's Beige Book report, a summary of economic conditions released Wednesday, showed.

"Most of the twelve Federal Reserve Districts reported little or no change in economic activity since the prior Beige Book period - the four Districts that differed reported modest growth," according to the summary. "Across Districts, contacts reported flat to declining consumer spending because, for many households, wages were failing to keep up with rising prices."

Economic uncertainty and tariffs were frequently cited as negative factors. The retail and hospitality sectors saw gains from domestic tourists but falling demand from international tourists.

There were flat to slightly higher sales of autos, while the manufacturing sector increasingly turned to AI to cut costs.

Eleven of the 12 districts saw little or no net change to employment, with the other posting a modest decline, according to the summary. There were some reports of increasing layoffs while other districts reported reducing headcounts through attrition spurred by return-to-office policies. There was modest or moderate growth across most of the districts.

Likewise, there were 10 districts that reported moderate or modest price growth, while the other two reported strong input price growth that outpaced selling price growth.

Nearly all districts noted tariff-related price increases, but firms also reported a reluctance to raise prices to customers due to price sensitivity. Most districts reported that contacts expected further price gains in the months ahead.

The Beige Book summary was prepared at the Federal Reserve Bank of Philadelphia based on information collected on or before Aug. 5.

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