WASHINGTON—The latest release of the Federal Reserve Beige Book shows that economic activity expanded across all 12 Fed districts in March and through early April.
While the economic outlook remains positive, the manufacturing, agriculture and transportation sectors expressed some concern over newly imposed and proposed tariffs.
There were reports throughout the Fed districts that steel prices rose as a result of the new tariff.
"The latest report from the Federal Reserve reflects some consternation over the impact of tariffs, and over trade tensions with China in general," said NAFCU Chief Economist and Vice President of Research Curt Long. "The economy continues to muddle through an unimpressive beginning to the year, but there should be some acceleration in the coming months. The Fed still appears poised to raise rates again in June."
The Beige Book also found that consumer spending rose in most areas of the country – noting gains in the non-auto retail sales and tourism sectors but varied results for vehicle sales. Loan demand increased during the time frame of this report, and commercial real estate activity and construction improved since the last report released in March, NAFCU said.
Other key points from the Beige Book, according to Long:
- Most districts saw modest to moderate employment growth in March and April
- Wage growth was reported as modest
- Prices increased at a moderate pace across all the Fed districts