Economic activity was little changed since March, but uncertainty around international trade policy was pervasive across the 12 Federal Reserve districts, according to the Fed’s third Beige Book report of the year. Just five districts saw slight growth, three districts noted activity was relatively unchanged, and the remaining four districts reported slight to modest declines.
Non-auto consumer spending was lower overall but most districts saw moderate to robust sales of vehicles and of some nondurables, generally attributed to a rush to purchase ahead of tariff-related price increases, according to the report. Home sales rose somewhat, and many districts continued to note low inventory levels. Commercial real estate activity expanded slightly as multifamily propped up the industrial and office sectors. Loan demand was flat to modestly higher, on net. The outlook in several districts worsened considerably as economic uncertainty rose, particularly surrounding tariffs.
