Federal Reserve's latest Beige Book: Economic activity is growing moderately, but energy prices and policy uncertainty are a worry.
The Federal Reserve's latest Beige Book report shows that since the beginning of July, economic activity has generally shown a moderate growth trend, but market concerns about energy prices, policy uncertainty and international conflicts have intensified.
The report pointed out that among the 12 jurisdictions under the Federal Reserve, 10 jurisdictions achieved small to moderate growth in economic activity, while the other two jurisdictions showed no significant changes. Despite limited growth in consumer spending, consumers have become significantly more sensitive to price changes. Consumer spending among high-income groups remains strong, but car sales are under pressure due to weak consumer confidence, high oil prices and rising financing costs.
Manufacturing in most jurisdictions shows signs of recovery. Some Federal Reserve jurisdictions reported strong demand, particularly defense and data center-related orders.
reported that labor market growth slowed and total employment increased only slightly. Labor demand in manufacturing and construction is relatively strong, but labor demand in retail and hospitality industries has declined.
On the price front, although most jurisdictions reported moderate price increases, the report emphasized that cost pressures from energy, transportation and raw material costs, as well as tariffs, continue.
According to the Federal Reserve's field research, companies are generally optimistic about the economic outlook. However, energy price trends, uncertainty in economic policies and international conflicts will remain the main risk factors facing companies in the future.

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