The Fed's Beige Book said US economic activity expanded modestly since early
July; 10 of 12 districts reported slight-to-moderate growth and two were flat.
Consumer spending edged up but price sensitivity increased; high-end consumption
remained firm while auto sales weakened amid softer confidence, higher gasoline
prices and rising financing costs. Manufacturing rebounded in most districts,
with several citing strong defense- and data-center-related orders. Employment
growth slowed, with overall payrolls only slightly higher; labor demand was
stronger in manufacturing and construction but weaker in retail and hospitality.
Most districts reported moderate price increases, with cost pressure from
energy, transportation, raw materials and tariffs. Firms expect a generally
positive near-term outlook but flagged uncertainty from energy prices, policy
and international conflicts.
