Fed's Beige reports 10 of 12 districts saw slow-to-moderate economic growth, one
showed slight decline and one was unchanged. Consumer spending is uneven; rising
cost pressures have widened differences across income groups—high-income
households remain relatively resilient and less price-sensitive, middle-income
households are “scramping every penny before spending,” and low-income
households face greater financial strain. Several districts reported higher
credit-card use, softer retail sales and stronger demand for necessities. Auto
dealers weaker cited new-car demand due to cost and fuel pressures, with
Increased purchases of used cars and hybrids. Manufacturing expanded at a
moderate-to-strong pace in nine districts, with one reporting district a slight
decline. Banking conditions are largely stable, but multiple districts reported
rising delinquencies in mortgages, consumer and agricultural loans. Six-month
business outlooks were little changed amid elevated uncertainty and signs of
weaker consumer spending.
