Overall economic activity increased slightly since January, with eight of the 12 Federal Reserve districts reporting slight to modest growth in activity, three others reporting no change and one noting a slight softening, the Fed said yesterday in its second Beige Book report of the year. Commercial real estate activity was weak, particularly for office space, although there were reports of robust demand for new data centers, industrial and manufacturing spaces, and large infrastructure projects. Loan demand was stable to down, and credit quality was generally healthy despite a few reports of rising delinquencies.
Employment rose at a slight to modest pace in most districts, according to the report. Labor market tightness eased further, with nearly all districts highlighting some improvement in labor availability and employee retention. Businesses generally found it easier to fill open positions and to find qualified applicants, although difficulties persisted in attracting workers for highly skilled positions, including healthcare professionals, engineers and skilled trades specialists such as welders and mechanics. Wages grew further across districts, although several reports indicated a slower pace of increase.
