Fed’s Beige Book shows 'little' change in US economic activity

By Mucahithan Avcioglu

ISTANBUL (AA)— US economic activity posted "little or no change" in most of the 12 Federal Reserve districts since the prior Beige Book, the Fed's latest Beige Book said on Wednesday.

The report, prepared with analyses from 12 districts of the central bank, noted that economic activity in most regions had changed little or not at all since the previous reporting period, while four regions recorded "modest" growth.

"Across Districts, contacts reported flat to declining consumer spending because, for many households, wages were failing to keep up with rising prices," it said.

The report cited economic uncertainty and tariffs as negative factors in the regions, noting that most companies saw little or no change in their optimism.

Noting that overall employment levels showed little or no change in 11 regions, it said one region experienced a "modest" decline.

The report said that modest wage increases were seen in half of the regions, while most other regions saw modest increases.

The Beige Book explained that price increases in 10 regions were "moderate or modest," with price increases related to tariffs highlighted in nearly all regions.

"While some firms reported passing through their entire cost increases to customers, some firms in nearly all Districts described at least some hesitancy in raising prices, citing customer price sensitivity, lack of pricing power, and fear of losing business," it noted.

Most Fed districts reported that the companies expected price hikes to continue in the months ahead, with three of those districts stating that the pace of price increases was expected to rise further.