Overall economic activity increased at a slight to moderate pace in seven of the 12 Federal Reserve districts in the opening months of 2026, while the number of districts reporting flat or declining activity increased from four to five, the Fed said in its second Beige Book report of the year.
Financial services activity was reported as stable to up, with commercial lending being the primary area of strength, the report said. For most districts that reported on residential real estate and construction, sales and activity decreased slightly, with low inventories and affordability remaining key issues. Nonresidential construction activity was mixed across reporting districts but increased slightly on net.
Prices increased moderately in recent weeks, with eight districts reporting moderate price growth and four seeing slight or modest increases. Many districts reported that costs rose across several nonlabor inputs, including insurance, utilities and energy, and metals and other raw materials.
