Fed's Beige Book Shows 'Little' Change in Economic Activity as Employment Falls

03:35 PM EST, 11/26/2025 (MT Newswires) -- Most Federal Reserve districts saw "little" change in economic activity since mid-October as overall employment fell slightly, the US central bank said in its latest Beige Book released Wednesday.

Out of the 12 Fed districts, two reported a modest drop in economic activity, while one saw growth, according to the document, prepared by the Dallas Fed based on data collected by Nov. 17.

The previous Beige Book, which was released Oct. 15, showed that economic activity was little changed since early September as prices increased further, while labor demand was "generally muted."

The Wednesday report indicated that employment decreased slightly, with about half of districts reporting subdued labor demand. "Despite an uptick in layoff announcements, more districts reported contacts limiting headcounts using hiring freezes, replacement-only hiring, and attrition than through layoffs," the latest document showed.

Wages generally rose at a modest rate, while labor costs continued to face upward pressure from increasing health insurance premiums, according to the Beige Book. Overall prices increased moderately during the latest reporting period.

"Input cost pressures were widespread in manufacturing and retail, largely reflecting tariff-induced increases," the Fed said. Certain materials saw a drop in prices amid "sluggish" demand and lowered tariffs, the document showed. Although contacts largely expect upward cost pressures to continue, intentions to hike prices in the near term were mixed.

Key economic data have been delayed due to a 43-day-long record federal government shutdown that ended recently.

The Beige Book contains evidence that's in line with market expectations, as well as monetary policymakers that favor further policy easing next month, TD Economics said. "If the Fed follows through with the December cut, we anticipate it will take a pause for some time," Economist Ksenia Bushmeneva wrote in a report.

The overall outlook was largely unchanged, according to the Beige Book report.

"Some contacts noted an increased risk of slower activity in coming months, while some optimism was noted among manufacturers," the Fed said in the Beige Book.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.