Overall economic activity increased at a slight to modest pace in eight of the twelve Federal Reserve Districts in the final months of 2025, with three districts reporting no change and one reporting a modest decline, the Fed said in its first Beige Book report of 2026.
Most banks reported slight to modest growth in consumer spending during the period examined, largely attributed to the holiday shopping season, according to the report. Banking conditions were generally reported as stable or improving, with some increased demand coming from credit cards, home equity loans and commercial lending.
Several districts noted that spending was stronger among higher-income consumers with increased spending on luxury goods, travel, tourism and experiential activities. Meanwhile, low- to moderate-income consumers were seen to be increasingly price sensitive and hesitant to spend on nonessential goods and services.
