Overall economic activity increased at a slight to moderate pace in eight of the 12 Federal Reserve districts in recent months, with two districts reporting little change and the remaining two reporting slight to modest declines, the Fed said in its third Beige Book report of the year.
Banking sector activity was generally steady, with loan demand stable to up moderately, according to the report. On balance, consumer spending increased slightly despite harsh winter weather in some regions and higher fuel prices. Many districts continued to report signs of consumer financial strain, increased price sensitivity, and rising demand at food banks and other social service organizations, while spending among higher-income consumers was resilient.
Housing market activity softened across several districts as heightened uncertainty and rising mortgage rates dampened buyer demand. Commercial real estate markets improved, with strength in industrial properties, especially data center projects. Agricultural activity was mixed, and several districts reported that rising crop prices helped offset steep price increases of fertilizer and fuel.
