Most Fed Districts Report Slight to Moderate Growth, Beige Book Says

02:43 PM EST, 03/04/2026 (MT Newswires) -- The US economy grew at a "slight to moderate" pace in seven of the 12 Federal Reserve districts since the last Beige Book, while the remaining districts reported flat or declining activity, the Fed said Wednesday.

Consumer spending edged higher in most districts, though two reported further declines. Many districts noted economic uncertainty, rising price sensitivity and harsh winter weather weighing on spending. Auto sales were particularly weak due to affordability issues.

Manufacturing activity generally improved, supported by rising new orders and stronger energy demand.

"Overall, economic expectations were optimistic, with most districts expecting slight to moderate growth in the coming months," the Beige Book said.

Employment was broadly stable with seven districts reporting no change in hiring. Wages increased at a "modest or moderate" pace in most areas amid continued demand for skilled workers.

Prices increased "moderately" since the last report, with eight districts reporting moderate growth and four noting slight to modest increases. Nine districts said that tariffs added to costs.

Some businesses continued to pass through tariff-related increases, while others held prices steady due to heightened consumer price sensitivity. Price growth is expected to slow in the near future.

This report was prepared at the Cleveland Fed Bank on data collected on or before Feb. 23, prior to the military action in Iran.

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