WASHINGTON—Most of the Federal Reserve's 12 districts reported modest to moderate economic growth throughout the U.S., according to the Fed's latest Beige Book data.
"The economy continued to expand while labor market strengthened further," said NAFCU Research Assistant Yun Cohen. "However, businesses remain concerned about uncertain trade policies, which have caused some to put capital spending plans on hold."
Also of note in this report, according to Cohen:
- Labor markets tightened further across a broad range of occupations, and over half of the districts cited firm employment, production and capacity constraints due to an inability to attract and retain qualified workers
- Most districts reported wage growth towards the upper end of a modest to moderate pace
- On balance, prices rose at a modest pace in most districts, although a few noted moderate increases, and nearly all reported that input costs rose faster than final goods prices
- Reports of tariff-induced cost increases have spread more broadly from manufacturers and contractors to retailers and restaurants
- District reports on non-auto retail sales growth appeared somewhat weaker while auto sales tended to improve, particularly for used cars
- Overall, consumer spending held steady and lending volumes grew modestly, although a few districts noted some slowing
- Most districts reported that firms remained positive, however, optimism has waned in some case due to increased uncertainty surrounding tariffs, rising interest rates, and labor market constraints