Seven of the 12 Federal Reserve Bank districts reported either unchanged or slight to modest declines in economic activity over the last month, according to a report issued by the Federal Reserve Wednesday.
In its latest Beige Book, reporting on economic activity since March 5, the Fed said economic activity was, for the most part, little changed since the previous report. However, the agency said, uncertainty around international trade policy was pervasive across reports. Wednesday’s report was the first Beige Book the Fed has published since the announcement of tariffs by President Donald Trump (R ) in early April.
“The outlook in several Districts worsened considerably as economic uncertainty, particularly surrounding tariffs, rose,” the report states.
However, there are some bright points in the report. It said, during the reporting period, home sales rose somewhat, and many districts continued to note low inventory levels. Commercial real estate (CRE) activity expanded slightly as multifamily propped up the industrial and office sectors, the reported stated, adding that loan demand was flat to modestly higher, on net.
The tariffs have had a range of effects on the economy, the report asserts. On the one hand, non-auto consumer spending was lower overall; on the other, most districts reported “moderate to robust sales of vehicles and of some nondurables, generally attributed to a rush to purchase ahead of tariff-related price increases.”
Tourism and travel are also taking a beating, the report indicates. It states that both leisure and business travel were down, on balance; several districts noted a decline in international visitors, according to the report.
Meanwhile, prices increased across all 12 districts, the report states. Six districts called price growth “modest” and six characterized growth as moderate, similar to the previous report.
April 23 Federal Reserve Beige Book
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