Federal Executive Branch
Here's a look at documents from the U.S. Executive Branch
Federal Agencies
Featured Stories
Federal Reserve Bank of St. Louis Issues Beige Book on on July 15, 2026
WASHINGTON, July 27 -- The Federal Reserve Bank of St. Louis issued the following Beige Book on July 15, 2026:
* * *
Summary of Economic Activity
Economic activity in the Eighth District has slightly increased since our previous report. Employment was unchanged and wage growth remained moderate. Prices rose at a robust pace, and increases were widespread. Reports on consumer spending and banking indicated conditions were largely unchanged. Manufacturing activity was mixed. The outlook is unchanged from our previous report, as contacts continue to highlight that uncertainty and elevated fuel ... Show Full Article WASHINGTON, July 27 -- The Federal Reserve Bank of St. Louis issued the following Beige Book on July 15, 2026: * * * Summary of Economic Activity Economic activity in the Eighth District has slightly increased since our previous report. Employment was unchanged and wage growth remained moderate. Prices rose at a robust pace, and increases were widespread. Reports on consumer spending and banking indicated conditions were largely unchanged. Manufacturing activity was mixed. The outlook is unchanged from our previous report, as contacts continue to highlight that uncertainty and elevated fuelcosts--driven by the conflict in the Middle East--continue to weigh on overall sentiment.
Labor Markets
Employment levels have remained largely unchanged since our previous report. A health-care provider reported continued difficulty filling licensed positions, leading to higher job openings. A regional bank reported stable staffing but anticipates slight declines ahead due to efficiency efforts. A local development authority in Southern Indiana continued operating with a lean staff, relying heavily on contracted labor. A consulting firm observed increased use of fractional staffing services as organizations limit full-time hiring to control costs. A regional grocer reported reducing part-time hours in response to weaker sales forecasts.
Wage growth has been moderate. Some employers in Memphis reported that they have not increased wages over the past three months despite rising employee requests for raises. Other contacts in Indiana noted that wage pressures have eased in recent months.
Prices
Prices have risen at a robust pace since our previous report. An electricity provider noted that supply-chain shortages have sharply increased the cost of energy-infrastructure materials, with some component prices rising significantly in recent months. A nonprofit leader in Arkansas reported ongoing increases in insurance, transportation, and labor costs that have heightened budget pressures. Contacts generally expect continued pass-through of higher costs in the coming months. For example, a Memphis-area firm observed that vendors are increasingly adding inflation-indexed price adjustments to their service contracts, a practice that was previously uncommon. A large retailer reported broad non-labor cost increases and indicated that it plans to raise prices for customers soon. An agribusiness contact noted that fertilizer-driven cost pressures are expected to persist through 2027 as current inventories work their way through the supply chain.
Consumer Spending
Consumer spending has remained unchanged since our previous report. A large retailer noted that sales fell short of expectations due to weaker discretionary spending and that customers were making more frequent trips but purchasing less per visit. Tourism and hospitality activity was flat overall. A hotel owner reported that, although revenue was down relative to a year ago, bookings exceeded expectations as customers made more last-minute decisions. In Northwest Arkansas, a contact described restaurant activity as stable but cautious, with new establishments continuing to open. A restaurant owner in Central Arkansas observed slower lunchtime traffic but expected improvement if fuel prices continued to ease. Hospitality contacts reported that customers were highly price sensitive, prompting some businesses to roll back earlier price increases. A social service nonprofit in St. Louis reported that meal demand rose about 30 percent over the past two months, reflecting declining consumer purchasing power and reductions in SNAP benefits.
Manufacturing
Manufacturing activity was mixed. A food-processing manufacturer reported plans to shut down its local plant, citing technology-related factors. A Memphis manufacturer noted slower production in recent months. Another contact in the industry indicated that hiring plans for some Missouri manufacturers are on hold, given that rising operational costs and tariffs have reduced profit margins and limited expansion. In contrast, a uniform manufacturer reported strong demand in the apparel segment, though customers are shifting toward lower-cost products--resulting in stable sales volumes but a changing product mix. An economic development official in Southern Indiana noted that several previously delayed manufacturing projects have recently restarted and that some are now scaling up beyond their initially announced scope.
Nonfinancial Services
Activity in the nonfinancial services sector has increased modestly since our previous report. A workforce training organization noted rising demand for customized training workshops in recent months. A human resources provider reported steady service demand, explaining that existing clients have continued purchasing services once budgets are approved. However, decision cycles have lengthened as clients monitor spending more closely. In contrast, a consulting firm serving nonprofits observed a slowdown in discretionary consulting work as organizations face tighter budgets and the loss of grants or contracts. A community action agency in Kentucky reported a surge in calls as households seek support for transportation-related needs. Transportation and logistics activity was mixed. One logistics firm indicated that customers have been expediting their orders in anticipation of new tariffs. Another firm reported that tariff announcements have disrupted supplier arrangements, leading some customers to cancel shipments.
Real Estate and Construction
Residential real estate activity was mixed. In St. Louis, a real estate agent described the housing market as very active, with buyers making cash offers and waiving inspections. In Indiana, a contact reported that the supply of listings remained tight and demand for higher-end homes had softened. A regional banker reported that new residential-loan demand remained weak due to low housing inventory and poor sentiment in several markets.
Commercial real estate activity was also mixed. A developer in Northwest Arkansas reported healthy conditions, highlighted by ongoing developments and new office spaces. Another developer, however, noted a slowdown in the number of new projects entering the pipeline. Construction activity was also mixed. A contact in Southern Indiana reported continued strength in warehouse construction, supported by robust regional industrial growth. An Arkansas chamber of commerce representative said housing construction remained strong, while a Memphis construction firm observed that many local projects remained on hold due to uncertainty, financing challenges, and a mismatch between lender underwriting standards and developer expectations.
Banking and Finance
Banking activity has remained largely unchanged since our previous report, with loan demand ranging from stable to slightly weaker across markets and borrower segments. One banker noted modest loan demand but emphasized that they were not easing standards to boost volume. Another reported that the commercial loan pipeline has been steady in recent months but has not grown. Credit standards were mostly unchanged, though some banks have tightened requirements. One banker described loan quality indicators as mixed: Commercial loans showed some improvement, while loans to households with weaker credit continued to deteriorate, reflecting growing stress among borrowers without strong balance sheets. Delinquencies overall remained stable, but several contacts observed early signs of distress. A bank in Central Arkansas reported that commercial credit quality remained steady, with no meaningful uptick in delinquencies. In contrast, another bank noted rising delinquencies among lower-income consumers and small businesses, though levels remained manageable. A community bank in Mississippi reported an increase in small-dollar loan activity to highly cash-constrained customers, indicating greater reliance on these products in recent months.
Agriculture and Natural Resources
Agriculture conditions remain largely unchanged from our previous report. A banker reported that farm operations are holding steady, with no significant uptick in loan delinquencies. In contrast, a rural lender in Northwest Arkansas noted that drought and reductions in federal funding have sharply reduced farm productivity and revenue. A lumber producer described favorable weather and said they have expanded work hours to meet their supply commitments. Meanwhile, an agribusiness contact expressed pessimism about the outlook for row-crop farming--particularly rice--observing that several farmers are uncertain whether they will be able to continue operating. Credit conditions remain tight for some growers, as certain financial institutions have become more hesitant to partner or share risk on farm loans.
For more information about District economic conditions visit: https://www.stlouisfed.org/research/regional-economy.
* * *
Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202607-st-louis.htm
* * *
Summary of Economic Activity
Economic activity in the Eighth District has slightly increased since our previous report. Employment was unchanged and wage growth remained moderate. Prices rose at a robust pace, and increases were widespread. Reports on consumer spending and banking indicated conditions were largely unchanged. Manufacturing activity was mixed. The outlook is unchanged from our previous report, as contacts continue to highlight that uncertainty and elevated fuel ... Show Full Article WASHINGTON, July 27 -- The Federal Reserve Bank of St. Louis issued the following Beige Book on July 15, 2026: * * * Summary of Economic Activity Economic activity in the Eighth District has slightly increased since our previous report. Employment was unchanged and wage growth remained moderate. Prices rose at a robust pace, and increases were widespread. Reports on consumer spending and banking indicated conditions were largely unchanged. Manufacturing activity was mixed. The outlook is unchanged from our previous report, as contacts continue to highlight that uncertainty and elevated fuelcosts--driven by the conflict in the Middle East--continue to weigh on overall sentiment.
Labor Markets
Employment levels have remained largely unchanged since our previous report. A health-care provider reported continued difficulty filling licensed positions, leading to higher job openings. A regional bank reported stable staffing but anticipates slight declines ahead due to efficiency efforts. A local development authority in Southern Indiana continued operating with a lean staff, relying heavily on contracted labor. A consulting firm observed increased use of fractional staffing services as organizations limit full-time hiring to control costs. A regional grocer reported reducing part-time hours in response to weaker sales forecasts.
Wage growth has been moderate. Some employers in Memphis reported that they have not increased wages over the past three months despite rising employee requests for raises. Other contacts in Indiana noted that wage pressures have eased in recent months.
Prices
Prices have risen at a robust pace since our previous report. An electricity provider noted that supply-chain shortages have sharply increased the cost of energy-infrastructure materials, with some component prices rising significantly in recent months. A nonprofit leader in Arkansas reported ongoing increases in insurance, transportation, and labor costs that have heightened budget pressures. Contacts generally expect continued pass-through of higher costs in the coming months. For example, a Memphis-area firm observed that vendors are increasingly adding inflation-indexed price adjustments to their service contracts, a practice that was previously uncommon. A large retailer reported broad non-labor cost increases and indicated that it plans to raise prices for customers soon. An agribusiness contact noted that fertilizer-driven cost pressures are expected to persist through 2027 as current inventories work their way through the supply chain.
Consumer Spending
Consumer spending has remained unchanged since our previous report. A large retailer noted that sales fell short of expectations due to weaker discretionary spending and that customers were making more frequent trips but purchasing less per visit. Tourism and hospitality activity was flat overall. A hotel owner reported that, although revenue was down relative to a year ago, bookings exceeded expectations as customers made more last-minute decisions. In Northwest Arkansas, a contact described restaurant activity as stable but cautious, with new establishments continuing to open. A restaurant owner in Central Arkansas observed slower lunchtime traffic but expected improvement if fuel prices continued to ease. Hospitality contacts reported that customers were highly price sensitive, prompting some businesses to roll back earlier price increases. A social service nonprofit in St. Louis reported that meal demand rose about 30 percent over the past two months, reflecting declining consumer purchasing power and reductions in SNAP benefits.
Manufacturing
Manufacturing activity was mixed. A food-processing manufacturer reported plans to shut down its local plant, citing technology-related factors. A Memphis manufacturer noted slower production in recent months. Another contact in the industry indicated that hiring plans for some Missouri manufacturers are on hold, given that rising operational costs and tariffs have reduced profit margins and limited expansion. In contrast, a uniform manufacturer reported strong demand in the apparel segment, though customers are shifting toward lower-cost products--resulting in stable sales volumes but a changing product mix. An economic development official in Southern Indiana noted that several previously delayed manufacturing projects have recently restarted and that some are now scaling up beyond their initially announced scope.
Nonfinancial Services
Activity in the nonfinancial services sector has increased modestly since our previous report. A workforce training organization noted rising demand for customized training workshops in recent months. A human resources provider reported steady service demand, explaining that existing clients have continued purchasing services once budgets are approved. However, decision cycles have lengthened as clients monitor spending more closely. In contrast, a consulting firm serving nonprofits observed a slowdown in discretionary consulting work as organizations face tighter budgets and the loss of grants or contracts. A community action agency in Kentucky reported a surge in calls as households seek support for transportation-related needs. Transportation and logistics activity was mixed. One logistics firm indicated that customers have been expediting their orders in anticipation of new tariffs. Another firm reported that tariff announcements have disrupted supplier arrangements, leading some customers to cancel shipments.
Real Estate and Construction
Residential real estate activity was mixed. In St. Louis, a real estate agent described the housing market as very active, with buyers making cash offers and waiving inspections. In Indiana, a contact reported that the supply of listings remained tight and demand for higher-end homes had softened. A regional banker reported that new residential-loan demand remained weak due to low housing inventory and poor sentiment in several markets.
Commercial real estate activity was also mixed. A developer in Northwest Arkansas reported healthy conditions, highlighted by ongoing developments and new office spaces. Another developer, however, noted a slowdown in the number of new projects entering the pipeline. Construction activity was also mixed. A contact in Southern Indiana reported continued strength in warehouse construction, supported by robust regional industrial growth. An Arkansas chamber of commerce representative said housing construction remained strong, while a Memphis construction firm observed that many local projects remained on hold due to uncertainty, financing challenges, and a mismatch between lender underwriting standards and developer expectations.
Banking and Finance
Banking activity has remained largely unchanged since our previous report, with loan demand ranging from stable to slightly weaker across markets and borrower segments. One banker noted modest loan demand but emphasized that they were not easing standards to boost volume. Another reported that the commercial loan pipeline has been steady in recent months but has not grown. Credit standards were mostly unchanged, though some banks have tightened requirements. One banker described loan quality indicators as mixed: Commercial loans showed some improvement, while loans to households with weaker credit continued to deteriorate, reflecting growing stress among borrowers without strong balance sheets. Delinquencies overall remained stable, but several contacts observed early signs of distress. A bank in Central Arkansas reported that commercial credit quality remained steady, with no meaningful uptick in delinquencies. In contrast, another bank noted rising delinquencies among lower-income consumers and small businesses, though levels remained manageable. A community bank in Mississippi reported an increase in small-dollar loan activity to highly cash-constrained customers, indicating greater reliance on these products in recent months.
Agriculture and Natural Resources
Agriculture conditions remain largely unchanged from our previous report. A banker reported that farm operations are holding steady, with no significant uptick in loan delinquencies. In contrast, a rural lender in Northwest Arkansas noted that drought and reductions in federal funding have sharply reduced farm productivity and revenue. A lumber producer described favorable weather and said they have expanded work hours to meet their supply commitments. Meanwhile, an agribusiness contact expressed pessimism about the outlook for row-crop farming--particularly rice--observing that several farmers are uncertain whether they will be able to continue operating. Credit conditions remain tight for some growers, as certain financial institutions have become more hesitant to partner or share risk on farm loans.
For more information about District economic conditions visit: https://www.stlouisfed.org/research/regional-economy.
* * *
Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202607-st-louis.htm
Federal Reserve Bank of San Francisco Issues Beige Book on on July 15, 2026
WASHINGTON, July 27 -- The Federal Reserve Bank of San Francisco issued the following Beige Book on July 15, 2026:
* * *
Summary of Economic Activity
Economic activity in the Twelfth District was somewhat muted but largely stable during the mid-May through June reporting period. Employment levels were largely steady, with employers generally maintaining head counts at current levels and continuing to invest in productivity-enhancing AI technologies. Wages continued to rise at a slight pace. Prices rose moderately, and reports varied on the ability of firms to pass on higher operating costs to ... Show Full Article WASHINGTON, July 27 -- The Federal Reserve Bank of San Francisco issued the following Beige Book on July 15, 2026: * * * Summary of Economic Activity Economic activity in the Twelfth District was somewhat muted but largely stable during the mid-May through June reporting period. Employment levels were largely steady, with employers generally maintaining head counts at current levels and continuing to invest in productivity-enhancing AI technologies. Wages continued to rise at a slight pace. Prices rose moderately, and reports varied on the ability of firms to pass on higher operating costs tofinal prices. Retail sales and consumer spending on services ticked down slightly. Manufacturing activity rose modestly. The agriculture sector was challenged by elevated production costs and regional drought conditions. Residential and commercial real estate activity was largely similar to prior reporting periods, and overall lending activity was stable. Funding challenges pushed some nonprofit organizations to reduce staffing or cut back on offered services. Contacts reported a weak economic outlook, though sentiment was slightly more optimistic than in prior periods.
Labor Markets
Employment levels were largely unchanged over the reporting period. Employers continued to generally maintain head counts, selectively hiring in response to attrition or specific business needs. There were fewer reports of announced or planned layoffs relative to prior reporting periods. Turnover rates remained low, and reports indicated that most open roles were easy to fill, particularly for entry-level positions. However, recruiting remained difficult for some technical and senior positions, including those in financial services in the Mountain West and Hawaii. Firms continued to invest in AI technologies, seeking to drive productivity improvements, and to assess employees' ability and willingness to integrate AI agents into the workflow.
Wages continued to rise at a slight pace in recent weeks. Contacts generally reported pay adjustments in line with historical averages, with some employers able to hold steady following annual pay increases earlier in the year. Still, wage pressures were noted in engineering and the skilled trades, and some contacts mentioned needing to pay a premium to attract and retain workers for specialized, hard-to-fill roles in financial services and information technology. In the entertainment and hospitality sectors, changes to local minimum wage schedules in San Diego prompted some employers to cut staffing for seasonal and temporary positions, while employers in Las Vegas reduced overtime hours for current employees because of increased labor availability.
Prices
Prices rose at a moderate pace over the reporting period. Elevated energy costs further drove up transportation and freight expenses across sectors, with some contacts noting vendor-imposed fuel surcharges. Cost pressures were reported for tariff-impacted goods such as metals and electronic components and more broadly for animal protein, fertilizer, petrochemicals, apparel, insurance, and technology services. Reports varied across sectors and geographies on firms' ability to pass on elevated costs to higher prices. Several retailers mentioned raising prices in recent weeks to reflect the increased costs, while some contacts in consumer services noted recent customer pushback on higher prices.
Community Conditions
Conditions in the community support and services sector were strained. Demand for essential support services, such as housing and food assistance, remained elevated. Several contacts reported signs of heightened household financial stress, including faster spending of tax refunds and rising credit card balances. Nonprofit organizations continued to face funding issues, pushing some organizations to reduce staffing or cut back on services. Local health services providers and small businesses reported facing elevated operating costs and financial challenges.
Retail Trade and Services
Retail sales ticked down slightly in recent weeks. While demand remained stable for groceries, pet products, and home improvement tools, it weakened somewhat for specialty and big-ticket discretionary items. Price-sensitive consumers continued to trade down to lower-cost alternatives, with a Southern California contact noting that in-person shoppers were not only moving away from higher-priced food options but also ordering fewer items. Inventory levels were solid overall, though some retailers expressed concerns about the impact of ongoing global supply chain disruptions on their ability to source products in the second half of the year.
Demand for consumer and business services varied by sector but slowed somewhat on net. While tourist volumes were reportedly strong at District cities hosting World Cup matches, overall leisure travel and spending by locals on restaurants, hotels, and entertainment slowed modestly in several other markets. One leisure and hospitality contact noted that the recent cessation of operations by a large low-cost carrier negatively impacted the number of last-minute travelers to major tourist hubs. In contrast, business travel remained robust, and contacts expected strong demand for corporate events and conventions throughout the summer. Activity was solid for custodial services and for laboratory testing, security, and health care.
Manufacturing
Manufacturing activity rose modestly in recent weeks, although with widespread challenges related to supply chain disruptions and commodity prices. Order pipelines improved for packaging machinery and remained solid for industrial automation equipment. Demand for building materials was reportedly down due to elevated economic uncertainty. Some manufacturers indicated that recent adjustments to tariffs on steel, aluminum, and copper pushed their clients to reassess planned investment projects.
Agriculture and Resource-Related Industries
Conditions in agriculture and resource-related sectors remained weak and largely unchanged from the prior reporting period. Farmers across the District were challenged by elevated production costs and low commodity crop prices. Acute drought conditions were reported throughout the Mountain West and parts of Oregon. Exports of cherries, apples, hay, and grains to Asian markets reportedly declined. A Mountain West contact described the agricultural sector in the region as undergoing a recession, with many farmers experiencing their second or third consecutive year of operational losses. In contrast, conditions in livestock markets were solid, similar to prior reporting periods.
Real Estate and Construction
Residential real estate activity was largely similar to prior reporting periods. Demand for single-family homes was solid overall, particularly in the Mountain West, but was dampened by recent upward movement in mortgage rates. Home sales were reportedly muted across California due to limited inventory and elevated asking prices. Supply of multifamily rental units in urban markets continued to outpace demand, putting some downward pressure on rental rates and pushing property managers to offer concessions. Construction activity was steady overall; however, reports on financing for new projects were mixed.
Activity in commercial real estate was steady on net but varied by region and segment. Demand for industrial space weakened slightly in Southern California, while demand for retail space was steady at solid levels across the Mountain West. Office space markets remained soft. Construction activity continued for well-capitalized projects, particularly large institutional and infrastructure work, but softened slightly on net. A large real estate developer noted that this slowdown recently pushed many general contractors to submit more competitive bids.
Financial Institutions
Conditions in the financial services sector were stable overall. Demand and inquiries for commercial and industrial loans picked up modestly, with positive activity led by middle-market companies. Borrowing activity among smaller businesses was mixed. Auto lending was weak, and mortgage activity remained muted. Competition for deposits was brisk. Credit quality was generally sound, though contacts reported some emerging concerns for small businesses and an increased level of substandard loans. Credit conditions in the agricultural sector were weak.
For more information about District economic conditions visit: https://www.frbsf.org/research-and-insights/publications/san-francisco-fed-twelfth-district-beige-book/.
* * *
Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202607-san-francisco.htm
* * *
Summary of Economic Activity
Economic activity in the Twelfth District was somewhat muted but largely stable during the mid-May through June reporting period. Employment levels were largely steady, with employers generally maintaining head counts at current levels and continuing to invest in productivity-enhancing AI technologies. Wages continued to rise at a slight pace. Prices rose moderately, and reports varied on the ability of firms to pass on higher operating costs to ... Show Full Article WASHINGTON, July 27 -- The Federal Reserve Bank of San Francisco issued the following Beige Book on July 15, 2026: * * * Summary of Economic Activity Economic activity in the Twelfth District was somewhat muted but largely stable during the mid-May through June reporting period. Employment levels were largely steady, with employers generally maintaining head counts at current levels and continuing to invest in productivity-enhancing AI technologies. Wages continued to rise at a slight pace. Prices rose moderately, and reports varied on the ability of firms to pass on higher operating costs tofinal prices. Retail sales and consumer spending on services ticked down slightly. Manufacturing activity rose modestly. The agriculture sector was challenged by elevated production costs and regional drought conditions. Residential and commercial real estate activity was largely similar to prior reporting periods, and overall lending activity was stable. Funding challenges pushed some nonprofit organizations to reduce staffing or cut back on offered services. Contacts reported a weak economic outlook, though sentiment was slightly more optimistic than in prior periods.
Labor Markets
Employment levels were largely unchanged over the reporting period. Employers continued to generally maintain head counts, selectively hiring in response to attrition or specific business needs. There were fewer reports of announced or planned layoffs relative to prior reporting periods. Turnover rates remained low, and reports indicated that most open roles were easy to fill, particularly for entry-level positions. However, recruiting remained difficult for some technical and senior positions, including those in financial services in the Mountain West and Hawaii. Firms continued to invest in AI technologies, seeking to drive productivity improvements, and to assess employees' ability and willingness to integrate AI agents into the workflow.
Wages continued to rise at a slight pace in recent weeks. Contacts generally reported pay adjustments in line with historical averages, with some employers able to hold steady following annual pay increases earlier in the year. Still, wage pressures were noted in engineering and the skilled trades, and some contacts mentioned needing to pay a premium to attract and retain workers for specialized, hard-to-fill roles in financial services and information technology. In the entertainment and hospitality sectors, changes to local minimum wage schedules in San Diego prompted some employers to cut staffing for seasonal and temporary positions, while employers in Las Vegas reduced overtime hours for current employees because of increased labor availability.
Prices
Prices rose at a moderate pace over the reporting period. Elevated energy costs further drove up transportation and freight expenses across sectors, with some contacts noting vendor-imposed fuel surcharges. Cost pressures were reported for tariff-impacted goods such as metals and electronic components and more broadly for animal protein, fertilizer, petrochemicals, apparel, insurance, and technology services. Reports varied across sectors and geographies on firms' ability to pass on elevated costs to higher prices. Several retailers mentioned raising prices in recent weeks to reflect the increased costs, while some contacts in consumer services noted recent customer pushback on higher prices.
Community Conditions
Conditions in the community support and services sector were strained. Demand for essential support services, such as housing and food assistance, remained elevated. Several contacts reported signs of heightened household financial stress, including faster spending of tax refunds and rising credit card balances. Nonprofit organizations continued to face funding issues, pushing some organizations to reduce staffing or cut back on services. Local health services providers and small businesses reported facing elevated operating costs and financial challenges.
Retail Trade and Services
Retail sales ticked down slightly in recent weeks. While demand remained stable for groceries, pet products, and home improvement tools, it weakened somewhat for specialty and big-ticket discretionary items. Price-sensitive consumers continued to trade down to lower-cost alternatives, with a Southern California contact noting that in-person shoppers were not only moving away from higher-priced food options but also ordering fewer items. Inventory levels were solid overall, though some retailers expressed concerns about the impact of ongoing global supply chain disruptions on their ability to source products in the second half of the year.
Demand for consumer and business services varied by sector but slowed somewhat on net. While tourist volumes were reportedly strong at District cities hosting World Cup matches, overall leisure travel and spending by locals on restaurants, hotels, and entertainment slowed modestly in several other markets. One leisure and hospitality contact noted that the recent cessation of operations by a large low-cost carrier negatively impacted the number of last-minute travelers to major tourist hubs. In contrast, business travel remained robust, and contacts expected strong demand for corporate events and conventions throughout the summer. Activity was solid for custodial services and for laboratory testing, security, and health care.
Manufacturing
Manufacturing activity rose modestly in recent weeks, although with widespread challenges related to supply chain disruptions and commodity prices. Order pipelines improved for packaging machinery and remained solid for industrial automation equipment. Demand for building materials was reportedly down due to elevated economic uncertainty. Some manufacturers indicated that recent adjustments to tariffs on steel, aluminum, and copper pushed their clients to reassess planned investment projects.
Agriculture and Resource-Related Industries
Conditions in agriculture and resource-related sectors remained weak and largely unchanged from the prior reporting period. Farmers across the District were challenged by elevated production costs and low commodity crop prices. Acute drought conditions were reported throughout the Mountain West and parts of Oregon. Exports of cherries, apples, hay, and grains to Asian markets reportedly declined. A Mountain West contact described the agricultural sector in the region as undergoing a recession, with many farmers experiencing their second or third consecutive year of operational losses. In contrast, conditions in livestock markets were solid, similar to prior reporting periods.
Real Estate and Construction
Residential real estate activity was largely similar to prior reporting periods. Demand for single-family homes was solid overall, particularly in the Mountain West, but was dampened by recent upward movement in mortgage rates. Home sales were reportedly muted across California due to limited inventory and elevated asking prices. Supply of multifamily rental units in urban markets continued to outpace demand, putting some downward pressure on rental rates and pushing property managers to offer concessions. Construction activity was steady overall; however, reports on financing for new projects were mixed.
Activity in commercial real estate was steady on net but varied by region and segment. Demand for industrial space weakened slightly in Southern California, while demand for retail space was steady at solid levels across the Mountain West. Office space markets remained soft. Construction activity continued for well-capitalized projects, particularly large institutional and infrastructure work, but softened slightly on net. A large real estate developer noted that this slowdown recently pushed many general contractors to submit more competitive bids.
Financial Institutions
Conditions in the financial services sector were stable overall. Demand and inquiries for commercial and industrial loans picked up modestly, with positive activity led by middle-market companies. Borrowing activity among smaller businesses was mixed. Auto lending was weak, and mortgage activity remained muted. Competition for deposits was brisk. Credit quality was generally sound, though contacts reported some emerging concerns for small businesses and an increased level of substandard loans. Credit conditions in the agricultural sector were weak.
For more information about District economic conditions visit: https://www.frbsf.org/research-and-insights/publications/san-francisco-fed-twelfth-district-beige-book/.
* * *
Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202607-san-francisco.htm
Federal Reserve Bank of Philadelphia Issues Beige Book on on July 15, 2026
WASHINGTON, July 27 -- The Federal Reserve Bank of Philadelphia issued the following Beige Book on July 15, 2026:
* * *
Summary of Economic Activity
Economic activity in the Third District rose slightly after declining slightly last period. Manufacturing activity continued to rise modestly, and nonmanufacturing activity picked up after falling last period. Retailers, both auto and nonauto, reported mostly steady sales. Tourism, which was boosted by mega events in the region, rose moderately. Employment levels continued to decline slightly during the period, while wage growth remained near its ... Show Full Article WASHINGTON, July 27 -- The Federal Reserve Bank of Philadelphia issued the following Beige Book on July 15, 2026: * * * Summary of Economic Activity Economic activity in the Third District rose slightly after declining slightly last period. Manufacturing activity continued to rise modestly, and nonmanufacturing activity picked up after falling last period. Retailers, both auto and nonauto, reported mostly steady sales. Tourism, which was boosted by mega events in the region, rose moderately. Employment levels continued to decline slightly during the period, while wage growth remained near itsmodest pre-pandemic rate. Prices continued to rise moderately. Firms continued to report increased cost pressures and raising prices to offset these higher costs. Expectations for growth over the next six months varied by firm type. Manufacturers' growth expectations remained widespread and above their historical average, but nonmanufacturers' expectations were limited and less widespread than in the prior period.
Labor Markets
Employment continued to decline slightly. On balance, nonmanufacturing firms again reported a decrease in full-time employment and little change in part-time employment. Meanwhile, manufacturing firms reported an increase in overall employment, an improvement since the prior period. Most firms continued to report no change in employment overall.
Staffing contacts reported an uptick in hiring activity for the second consecutive period. One staffing contact said they believe the industry has passed the bottom and is entering an upward cycle, but multiple contacts noted that demand for labor remains low by historical standards. Most contacts reported little trouble with labor supply. However, a couple of contacts highlighted that the lack of skilled labor has constrained manufacturing activity, an issue that has worsened in recent months with competition for skilled labor picking up and the existing workforce continuing to age into retirement. A staffing contact shared that a client would like to increase capacity and hire more assembly line workers, but they have been unable to find skilled machinists and operators to run the production. Another contact reported that a shortage of electricians has delayed data center projects in the region.
Wage inflation appeared to hold steady at a modest pace. Contacts reported little upward wage pressure, with wage increases in line with or slightly below their average pre-pandemic rate.
Prices
Firms' prices continued to rise moderately this period. Our monthly surveys continued to suggest overall increases in prices: The prices paid and prices received indexes for manufacturers and prices received index for nonmanufacturers all remained above their historical averages in June. The prices paid index for nonmanufacturers declined and was roughly in line with its historical average.
Most contacts across sectors reported higher input costs this period. Contacts reported that fuel surcharges became more widespread in the last six weeks and noted that the costs of plastic- or fertilizer-dependent products were elevated owing to the ongoing conflict in the Middle East. The willingness and ability to pass on these higher costs varied from firm to firm, and according to one contact, from customer to customer within a firm. One retailer reported their prices were up 3 percent from a year ago, less than those of their competitors, as they tried to sustain demand.
Looking ahead, most contacts don't expect significant easing in the pace of price increases over the coming months. While contacts expect fuel surcharges to ease if the conflict in the Middle East is resolved, many believe other elevated material costs will be stickier. The indexes for future prices paid and future prices received for manufacturers remained well above their historical averages in June.
Manufacturing
Manufacturing activity rose modestly in the current period, a continuation of the average trend last period--however, month-to-month volatility appears elevated. The index for new orders rose to a moderately positive level, while the shipments index remained modestly positive.
Nearly three-quarters of surveyed firms indicated that uncertainty acted as a constraint on capacity utilization in the most recent quarter. However, contacts reported continued strength in activities related to data centers, AI, and defense-related manufacturing. This strength led one contact to say that they believe it is now a capital expenditure-driven economy rather than a consumer-driven one.
Looking ahead, manufacturers' optimism about growth over the next six months remained widespread. The indexes for future new orders and shipments stayed elevated above their historical averages. The share of firms expecting an increase in capital expenditures over the next six months was also elevated.
Trade and Services
On balance, firms across a broad spectrum of nonmanufacturing industries reported a slight increase in activity after a modest drop last period. The sales/revenues index improved to a modestly positive level, while the new orders index suggested little change.
Retailers (nonauto) reported little change in sales over the current period, after sales declined modestly in the last period. One retailer explained that any reported increase in sales was due to higher prices, noting that the volume and frequency of customer visits remained down, similar to last period, but customers spent slightly more each visit. Meanwhile, another contact highlighted that they continue to be surprised by the amount people are willing to spend.
Auto dealers reported mostly steady auto sales this period, up from a moderate decrease last period. Affordability concerns continue to keep many consumers holding on to older cars rather than buying new vehicles, according to contacts.
Tourism activity continued to rise moderately, in line with contacts' prior expectations that were boosted by the World Cup and America 250 events around the Philadelphia area. Tourism contacts reported strong domestic leisure travel, which has been bolstered by many travelers opting to vacation closer to home instead of traveling internationally.
Expectations among nonmanufacturers for their own growth over the next six months were less widespread than in the prior period, with surveyed firms split equally between an increase and a decrease in their expectations for future activity.
Real Estate and Construction
Existing home sales declined slightly this period, after declining modestly last period. Contacts reported that limited supply continued to push already-elevated home prices even higher. One contact succinctly summarized the environment as "a long-term stagnant housing market."
New-home builders reported little change in sales, following a modest decline last period, but described an overall low level of activity by historical standards.
Nonresidential construction activity appeared little changed after recording slight declines in the prior two periods. Contacts reported continued construction activity by firms in the data center and related manufacturing spaces but little new activity elsewhere. One retailer reported accelerating new-store construction and capital expenditure plans for the rest of this year and next, citing favorable labor and material availability and better-than-expected cash flow. In nonresidential markets, leasing activity was little changed.
Credit Conditions
The overall volume of bank lending (excluding credit cards) rose modestly during the period (not seasonally adjusted), compared with little change last period and a slight decline one year ago.
District banks reported moderate increases in commercial and industrial lending and home mortgages. Home equity lines of credit and commercial real estate lending rose modestly, while auto lending declined slightly. Credit card volumes rose moderately, which is typical for the season.
Banking contacts reported mostly steady loan demand, noting some clients remained hesitant to start new projects because of economic uncertainty, while others are feeling a little better and starting to move off the sidelines. Multiple bankers reported increased competition for loans, leading to some changes in loan pricing and structure. Overall, contacts reported no deterioration in credit quality.
For more information about District economic conditions visit: https://www.philadelphiafed.org/regional-economy.
* * *
Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202607-philadelphia.htm
* * *
Summary of Economic Activity
Economic activity in the Third District rose slightly after declining slightly last period. Manufacturing activity continued to rise modestly, and nonmanufacturing activity picked up after falling last period. Retailers, both auto and nonauto, reported mostly steady sales. Tourism, which was boosted by mega events in the region, rose moderately. Employment levels continued to decline slightly during the period, while wage growth remained near its ... Show Full Article WASHINGTON, July 27 -- The Federal Reserve Bank of Philadelphia issued the following Beige Book on July 15, 2026: * * * Summary of Economic Activity Economic activity in the Third District rose slightly after declining slightly last period. Manufacturing activity continued to rise modestly, and nonmanufacturing activity picked up after falling last period. Retailers, both auto and nonauto, reported mostly steady sales. Tourism, which was boosted by mega events in the region, rose moderately. Employment levels continued to decline slightly during the period, while wage growth remained near itsmodest pre-pandemic rate. Prices continued to rise moderately. Firms continued to report increased cost pressures and raising prices to offset these higher costs. Expectations for growth over the next six months varied by firm type. Manufacturers' growth expectations remained widespread and above their historical average, but nonmanufacturers' expectations were limited and less widespread than in the prior period.
Labor Markets
Employment continued to decline slightly. On balance, nonmanufacturing firms again reported a decrease in full-time employment and little change in part-time employment. Meanwhile, manufacturing firms reported an increase in overall employment, an improvement since the prior period. Most firms continued to report no change in employment overall.
Staffing contacts reported an uptick in hiring activity for the second consecutive period. One staffing contact said they believe the industry has passed the bottom and is entering an upward cycle, but multiple contacts noted that demand for labor remains low by historical standards. Most contacts reported little trouble with labor supply. However, a couple of contacts highlighted that the lack of skilled labor has constrained manufacturing activity, an issue that has worsened in recent months with competition for skilled labor picking up and the existing workforce continuing to age into retirement. A staffing contact shared that a client would like to increase capacity and hire more assembly line workers, but they have been unable to find skilled machinists and operators to run the production. Another contact reported that a shortage of electricians has delayed data center projects in the region.
Wage inflation appeared to hold steady at a modest pace. Contacts reported little upward wage pressure, with wage increases in line with or slightly below their average pre-pandemic rate.
Prices
Firms' prices continued to rise moderately this period. Our monthly surveys continued to suggest overall increases in prices: The prices paid and prices received indexes for manufacturers and prices received index for nonmanufacturers all remained above their historical averages in June. The prices paid index for nonmanufacturers declined and was roughly in line with its historical average.
Most contacts across sectors reported higher input costs this period. Contacts reported that fuel surcharges became more widespread in the last six weeks and noted that the costs of plastic- or fertilizer-dependent products were elevated owing to the ongoing conflict in the Middle East. The willingness and ability to pass on these higher costs varied from firm to firm, and according to one contact, from customer to customer within a firm. One retailer reported their prices were up 3 percent from a year ago, less than those of their competitors, as they tried to sustain demand.
Looking ahead, most contacts don't expect significant easing in the pace of price increases over the coming months. While contacts expect fuel surcharges to ease if the conflict in the Middle East is resolved, many believe other elevated material costs will be stickier. The indexes for future prices paid and future prices received for manufacturers remained well above their historical averages in June.
Manufacturing
Manufacturing activity rose modestly in the current period, a continuation of the average trend last period--however, month-to-month volatility appears elevated. The index for new orders rose to a moderately positive level, while the shipments index remained modestly positive.
Nearly three-quarters of surveyed firms indicated that uncertainty acted as a constraint on capacity utilization in the most recent quarter. However, contacts reported continued strength in activities related to data centers, AI, and defense-related manufacturing. This strength led one contact to say that they believe it is now a capital expenditure-driven economy rather than a consumer-driven one.
Looking ahead, manufacturers' optimism about growth over the next six months remained widespread. The indexes for future new orders and shipments stayed elevated above their historical averages. The share of firms expecting an increase in capital expenditures over the next six months was also elevated.
Trade and Services
On balance, firms across a broad spectrum of nonmanufacturing industries reported a slight increase in activity after a modest drop last period. The sales/revenues index improved to a modestly positive level, while the new orders index suggested little change.
Retailers (nonauto) reported little change in sales over the current period, after sales declined modestly in the last period. One retailer explained that any reported increase in sales was due to higher prices, noting that the volume and frequency of customer visits remained down, similar to last period, but customers spent slightly more each visit. Meanwhile, another contact highlighted that they continue to be surprised by the amount people are willing to spend.
Auto dealers reported mostly steady auto sales this period, up from a moderate decrease last period. Affordability concerns continue to keep many consumers holding on to older cars rather than buying new vehicles, according to contacts.
Tourism activity continued to rise moderately, in line with contacts' prior expectations that were boosted by the World Cup and America 250 events around the Philadelphia area. Tourism contacts reported strong domestic leisure travel, which has been bolstered by many travelers opting to vacation closer to home instead of traveling internationally.
Expectations among nonmanufacturers for their own growth over the next six months were less widespread than in the prior period, with surveyed firms split equally between an increase and a decrease in their expectations for future activity.
Real Estate and Construction
Existing home sales declined slightly this period, after declining modestly last period. Contacts reported that limited supply continued to push already-elevated home prices even higher. One contact succinctly summarized the environment as "a long-term stagnant housing market."
New-home builders reported little change in sales, following a modest decline last period, but described an overall low level of activity by historical standards.
Nonresidential construction activity appeared little changed after recording slight declines in the prior two periods. Contacts reported continued construction activity by firms in the data center and related manufacturing spaces but little new activity elsewhere. One retailer reported accelerating new-store construction and capital expenditure plans for the rest of this year and next, citing favorable labor and material availability and better-than-expected cash flow. In nonresidential markets, leasing activity was little changed.
Credit Conditions
The overall volume of bank lending (excluding credit cards) rose modestly during the period (not seasonally adjusted), compared with little change last period and a slight decline one year ago.
District banks reported moderate increases in commercial and industrial lending and home mortgages. Home equity lines of credit and commercial real estate lending rose modestly, while auto lending declined slightly. Credit card volumes rose moderately, which is typical for the season.
Banking contacts reported mostly steady loan demand, noting some clients remained hesitant to start new projects because of economic uncertainty, while others are feeling a little better and starting to move off the sidelines. Multiple bankers reported increased competition for loans, leading to some changes in loan pricing and structure. Overall, contacts reported no deterioration in credit quality.
For more information about District economic conditions visit: https://www.philadelphiafed.org/regional-economy.
* * *
Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202607-philadelphia.htm
Federal Reserve Bank of Cleveland Issues Beige Book on on July 15, 2026
WASHINGTON, July 27 -- The Federal Reserve Bank of Cleveland issued the following Beige Book on July 15, 2026:
* * *
Summary of Economic Activity
On balance, Fourth District contacts reported that business activity increased modestly in recent weeks, and contacts generally anticipated moderate growth in the coming months. Demand for manufactured goods continued to rise, though at a slower pace than in the prior reporting period. Higher fuel costs continued to weigh on retail sales, and, in some cases, filtered through to ad hoc increases in selling prices and employee compensation. Overall, ... Show Full Article WASHINGTON, July 27 -- The Federal Reserve Bank of Cleveland issued the following Beige Book on July 15, 2026: * * * Summary of Economic Activity On balance, Fourth District contacts reported that business activity increased modestly in recent weeks, and contacts generally anticipated moderate growth in the coming months. Demand for manufactured goods continued to rise, though at a slower pace than in the prior reporting period. Higher fuel costs continued to weigh on retail sales, and, in some cases, filtered through to ad hoc increases in selling prices and employee compensation. Overall,contacts said that their employment levels rose slightly and that wage pressures remained moderate for most roles. Nonlabor costs and selling prices both grew at a robust pace.
Labor Markets
Employment levels rose slightly on balance in recent weeks, though reports varied by sector. Nonfinancial services and construction contacts reported modest and moderate employment growth, respectively. Contacts in most other sectors reported flat staffing levels, while freight contacts reported a modest decline. Contacts who reported hiring generally said they did so to meet higher demand, while those who reported flat or declining staffing levels cited softer demand, a need to protect operating margins, or uncertainty about overall economic conditions. Several contacts were using or planning to use AI or other forms of automation to reduce the need for workers or improve the productivity of existing workers. Overall, contacts anticipated modest employment growth in the coming months.
Wage pressures remained moderate on balance as cost-of-living adjustments and merit increases remained the primary drivers of growth. Still, some contacts continued to report additional pay increases intended to help employees manage higher costs. One manufacturer attributed these wage pressures to higher prices resulting from the conflict in the Middle East, and a realtor offered bonuses and telework to help employees manage higher fuel prices. Several service providers and one manufacturer raised wages to attract or retain specialized professionals and tradespeople amid high competition for specific skill sets.
Prices
Nonlabor input cost growth remained robust in recent weeks. Contacts across industries continued to cite higher fuel costs as the primary driver of input cost pressures. Firms reported direct impacts as costs rose for transportation and petroleum-based products and indirect impacts as higher fuel costs filtered through to items sensitive to shipping costs, including metals and construction materials. Costs continued to rise for electricity, insurance, software, and food, albeit at a slower pace than in recent reporting periods. On balance, contacts expected nonlabor input cost growth to remain robust, with some anticipating relief from falling fuel prices and others expecting the "ripples" of the conflict in the Middle East to remain.
Contacts reported a robust increase in selling prices in recent weeks, a circumstance which several attributed to passing along rising fuel prices and higher costs related to tariffs. However, the extent to which these price increases made up for rising costs varied: Some contacts reported passing along all the cost increases to their customers, some passed on only part of the increases, and some did not pass along any of the increases for fear of losing customers. Other firms attempted to offset higher nonlabor costs through improvements in productivity or reductions in labor costs.
Consumer Spending
Consumer spending declined modestly after a slight decrease in the prior reporting period. Retailers across industry segments attributed the declines to the ongoing impact of high fuel prices. One nonauto retailer said spending by low-income households fell while that of high-income households was unchanged, and another noted that price increases pushed revenue higher even as unit sales fell. Auto dealers generally reported flat or softer sales due to high vehicle prices and interest rates, and one dealer added that demand for service and parts rose as consumers held onto vehicles longer. On balance, retailers expected demand to increase modestly in the coming months.
Manufacturing
On balance, contacts reported that demand for manufactured goods rose moderately after a robust increase in the prior reporting period. Data center development continued to drive demand for metal products and electrical components. In addition, several metal producers reported stronger orders as customers depleted their imported inventories and shifted to domestic sources to avoid tariffs. A small number of contacts reported flat or softer orders because of low consumer spending, while a candy producer reported higher orders as consumers traded down from higher-priced options. Manufacturers generally expected demand to increase moderately in the coming months.
Real Estate and Construction
Residential construction and real estate activity increased at a robust pace in recent weeks. Homebuilders reported higher demand for affordable homes and still-strong demand for luxury homes. However, one contact expressed concern that the overall housing market had softened because of high construction costs and interest rates, leading some homeowners to add on to or remodel their current homes instead of moving. Contacts anticipated strong demand growth in the coming months.
In nonresidential construction and real estate, contacts reported modest demand growth in recent weeks. Demand for industrial space picked up, and one contact noted that mergers and acquisitions were driving sales and leasing activity. By contrast, contacts reported stable or softer demand for commercial real estate. Looking ahead, contacts expected strong demand growth in the coming months. Builders anticipated more bidding opportunities in the near term, an expectation which one contact attributed to decreased uncertainty pending a resolution of the conflict in the Middle East.
Financial Services
Overall, bankers reported that loan demand grew modestly in recent weeks. Commercial bankers noted increases in mergers, acquisitions, and capital expenditures since the last reporting period. One banker mentioned that firms were moving ahead with projects that they could no longer delay. On the consumer side, one banker said that demand for personal loans and credit card utilization increased as clients planned home renovations and travel. Looking ahead, bankers expected loan demand to increase moderately, driven by continued spending by households and businesses and easing cost pressures if the conflict in the Middle East is resolved.
Nonfinancial Services
Demand for nonfinancial services grew moderately after multiple periods of robust growth, though contacts expected a return to robust growth in the coming months. Some contacts reported higher overall demand as clients moved forward with real estate transactions and capital projects, while others gained market share as clients sought lower prices and better service. Freight contacts generally reported robust demand growth, driven by higher manufacturing and construction activity, though one contact cautioned that this increase could reflect a redistribution of market share as select haulers gained customers from shuttered competitors. Freight contacts generally expected a similar pace of growth in the coming months.
Community Conditions
Most community college contacts expected enrollments to grow in fall 2026 compared to fall 2025. Some contacts reported strong demand from both employers and students for short-term credentials, skilled trades, and apprenticeships in IT, health care, and advanced manufacturing, though one noted lower demand for computer science programs. To meet this increased demand, contacts planned to add more short-term training programs, align coursework with employers' needs, and develop pathways between noncredit programs and traditional degrees. Most contacts said that declines in funding impacted their ability to expand programs, support students, and hire instructors. Regarding staffing, one contact shared that "a lack of qualified instructors for workforce training is a major challenge."
For more information about District economic conditions visit: https://www.clevelandfed.org/en/region/regional-analysis.
* * *
Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202607-cleveland.htm
* * *
Summary of Economic Activity
On balance, Fourth District contacts reported that business activity increased modestly in recent weeks, and contacts generally anticipated moderate growth in the coming months. Demand for manufactured goods continued to rise, though at a slower pace than in the prior reporting period. Higher fuel costs continued to weigh on retail sales, and, in some cases, filtered through to ad hoc increases in selling prices and employee compensation. Overall, ... Show Full Article WASHINGTON, July 27 -- The Federal Reserve Bank of Cleveland issued the following Beige Book on July 15, 2026: * * * Summary of Economic Activity On balance, Fourth District contacts reported that business activity increased modestly in recent weeks, and contacts generally anticipated moderate growth in the coming months. Demand for manufactured goods continued to rise, though at a slower pace than in the prior reporting period. Higher fuel costs continued to weigh on retail sales, and, in some cases, filtered through to ad hoc increases in selling prices and employee compensation. Overall,contacts said that their employment levels rose slightly and that wage pressures remained moderate for most roles. Nonlabor costs and selling prices both grew at a robust pace.
Labor Markets
Employment levels rose slightly on balance in recent weeks, though reports varied by sector. Nonfinancial services and construction contacts reported modest and moderate employment growth, respectively. Contacts in most other sectors reported flat staffing levels, while freight contacts reported a modest decline. Contacts who reported hiring generally said they did so to meet higher demand, while those who reported flat or declining staffing levels cited softer demand, a need to protect operating margins, or uncertainty about overall economic conditions. Several contacts were using or planning to use AI or other forms of automation to reduce the need for workers or improve the productivity of existing workers. Overall, contacts anticipated modest employment growth in the coming months.
Wage pressures remained moderate on balance as cost-of-living adjustments and merit increases remained the primary drivers of growth. Still, some contacts continued to report additional pay increases intended to help employees manage higher costs. One manufacturer attributed these wage pressures to higher prices resulting from the conflict in the Middle East, and a realtor offered bonuses and telework to help employees manage higher fuel prices. Several service providers and one manufacturer raised wages to attract or retain specialized professionals and tradespeople amid high competition for specific skill sets.
Prices
Nonlabor input cost growth remained robust in recent weeks. Contacts across industries continued to cite higher fuel costs as the primary driver of input cost pressures. Firms reported direct impacts as costs rose for transportation and petroleum-based products and indirect impacts as higher fuel costs filtered through to items sensitive to shipping costs, including metals and construction materials. Costs continued to rise for electricity, insurance, software, and food, albeit at a slower pace than in recent reporting periods. On balance, contacts expected nonlabor input cost growth to remain robust, with some anticipating relief from falling fuel prices and others expecting the "ripples" of the conflict in the Middle East to remain.
Contacts reported a robust increase in selling prices in recent weeks, a circumstance which several attributed to passing along rising fuel prices and higher costs related to tariffs. However, the extent to which these price increases made up for rising costs varied: Some contacts reported passing along all the cost increases to their customers, some passed on only part of the increases, and some did not pass along any of the increases for fear of losing customers. Other firms attempted to offset higher nonlabor costs through improvements in productivity or reductions in labor costs.
Consumer Spending
Consumer spending declined modestly after a slight decrease in the prior reporting period. Retailers across industry segments attributed the declines to the ongoing impact of high fuel prices. One nonauto retailer said spending by low-income households fell while that of high-income households was unchanged, and another noted that price increases pushed revenue higher even as unit sales fell. Auto dealers generally reported flat or softer sales due to high vehicle prices and interest rates, and one dealer added that demand for service and parts rose as consumers held onto vehicles longer. On balance, retailers expected demand to increase modestly in the coming months.
Manufacturing
On balance, contacts reported that demand for manufactured goods rose moderately after a robust increase in the prior reporting period. Data center development continued to drive demand for metal products and electrical components. In addition, several metal producers reported stronger orders as customers depleted their imported inventories and shifted to domestic sources to avoid tariffs. A small number of contacts reported flat or softer orders because of low consumer spending, while a candy producer reported higher orders as consumers traded down from higher-priced options. Manufacturers generally expected demand to increase moderately in the coming months.
Real Estate and Construction
Residential construction and real estate activity increased at a robust pace in recent weeks. Homebuilders reported higher demand for affordable homes and still-strong demand for luxury homes. However, one contact expressed concern that the overall housing market had softened because of high construction costs and interest rates, leading some homeowners to add on to or remodel their current homes instead of moving. Contacts anticipated strong demand growth in the coming months.
In nonresidential construction and real estate, contacts reported modest demand growth in recent weeks. Demand for industrial space picked up, and one contact noted that mergers and acquisitions were driving sales and leasing activity. By contrast, contacts reported stable or softer demand for commercial real estate. Looking ahead, contacts expected strong demand growth in the coming months. Builders anticipated more bidding opportunities in the near term, an expectation which one contact attributed to decreased uncertainty pending a resolution of the conflict in the Middle East.
Financial Services
Overall, bankers reported that loan demand grew modestly in recent weeks. Commercial bankers noted increases in mergers, acquisitions, and capital expenditures since the last reporting period. One banker mentioned that firms were moving ahead with projects that they could no longer delay. On the consumer side, one banker said that demand for personal loans and credit card utilization increased as clients planned home renovations and travel. Looking ahead, bankers expected loan demand to increase moderately, driven by continued spending by households and businesses and easing cost pressures if the conflict in the Middle East is resolved.
Nonfinancial Services
Demand for nonfinancial services grew moderately after multiple periods of robust growth, though contacts expected a return to robust growth in the coming months. Some contacts reported higher overall demand as clients moved forward with real estate transactions and capital projects, while others gained market share as clients sought lower prices and better service. Freight contacts generally reported robust demand growth, driven by higher manufacturing and construction activity, though one contact cautioned that this increase could reflect a redistribution of market share as select haulers gained customers from shuttered competitors. Freight contacts generally expected a similar pace of growth in the coming months.
Community Conditions
Most community college contacts expected enrollments to grow in fall 2026 compared to fall 2025. Some contacts reported strong demand from both employers and students for short-term credentials, skilled trades, and apprenticeships in IT, health care, and advanced manufacturing, though one noted lower demand for computer science programs. To meet this increased demand, contacts planned to add more short-term training programs, align coursework with employers' needs, and develop pathways between noncredit programs and traditional degrees. Most contacts said that declines in funding impacted their ability to expand programs, support students, and hire instructors. Regarding staffing, one contact shared that "a lack of qualified instructors for workforce training is a major challenge."
For more information about District economic conditions visit: https://www.clevelandfed.org/en/region/regional-analysis.
* * *
Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202607-cleveland.htm
Federal Reserve Bank of Boston Issues Beige Book on on July 15, 2026
WASHINGTON, July 27 -- The Federal Reserve Bank of Boston issued the following Beige Book on July 15, 2026:
* * *
Summary of Economic Activity
Economic activity continued to expand at a slight pace. Consumer spending rose modestly, supported by the World Cup soccer tournament, but many consumers showed heightened price sensitivity. Manufacturing activity grew slightly, with strong demand from defense and automation. Bank loan volume ticked up, as did nonfinancial services activity. Real estate activity was mixed, with stable nonresidential leasing, softer construction activity, and moderate ... Show Full Article WASHINGTON, July 27 -- The Federal Reserve Bank of Boston issued the following Beige Book on July 15, 2026: * * * Summary of Economic Activity Economic activity continued to expand at a slight pace. Consumer spending rose modestly, supported by the World Cup soccer tournament, but many consumers showed heightened price sensitivity. Manufacturing activity grew slightly, with strong demand from defense and automation. Bank loan volume ticked up, as did nonfinancial services activity. Real estate activity was mixed, with stable nonresidential leasing, softer construction activity, and moderatedeclines in home sales. Nonprofits faced difficulties meeting growing client needs. Employment was unchanged, as labor demand remained healthy despite isolated layoffs. Wages rose slightly, but manufacturers reported increased wage competition. Output prices rose slightly, and cost pressures remained widespread. The outlook improved marginally, and perceived uncertainty decreased.
Labor Markets
Employment was roughly unchanged overall. Manufacturers reported slight increases in payrolls, and retail and hospitality contacts said seasonal hires exceeded last summer's levels. Services employment was mostly stable, although one firm reported modest layoffs of white-collar staff because of AI-related efficiency gains. In construction, apprentices experienced layoffs, while more experienced workers held their jobs. Wages rose slightly on average, with increases noted for manufacturing, retail, and hospitality workers; wages were flat otherwise. Job openings inched up, but employers reportedly remained cautious, with hiring proceeding at a very slow pace. Grocery and tourism contacts reported easier hiring compared with last summer but noted the market remained tight in spots. Manufacturers experienced a small increase in applications but, in some cases, struggled to hire and retain workers because of increased wage competition. Most contacts did not expect major changes in headcounts going forward, although one hospitality contact planned to increase hiring moderately.
Prices
Output prices increased slightly on average. Construction prices rose modestly, driven by further increases in input costs. Manufacturers likewise cited mounting cost pressures as the source of modest price increases. A large financial services firm left prices unchanged despite facing moderate cost increases, and nonfinancial services prices were mostly unchanged. Lodging prices rose slightly year-over-year at high-end resorts; meanwhile, more budget-friendly accommodations reported increased price sensitivity among consumers and kept room rates flat despite increased costs. A grocery operator reported modest price increases and observed heightened price sensitivity. Energy costs remained elevated, although one contact mentioned a modest decline in diesel prices, partly alleviating cost pressures. Pricing plans for the near term varied across firms. While multiple firms anticipated holding prices steady, hospital prices were expected to rise slightly, as was tuition for at least one public university.
Consumer Spending
Consumer spending increased modestly overall in recent months, as tourism spending posted modest gains and retail spending grew slightly. However, several contacts mentioned discretionary spending was down for households with modest means owing to high necessities prices. Boston hotel contacts said World Cup bookings were initially below expectations but rose to meet them after room rates were reduced to seasonally typical levels. Bars in Greater Boston also saw a marked uptick in beer sales, which they attributed to the World Cup. The volume of Canadian travelers increased slightly from last summer, but remained well below historical levels, disproportionately affecting some towns in coastal Maine and northern Vermont. Other contacts from Maine and Vermont noted continued strength in luxury travel and softer demand for budget-friendly travel. A grocery chain operator reported overall sales that were softer than anticipated but said higher beef prices had led to record sales of chicken and pork as customers traded down to those lower-priced items. Relative to the spring, when uncertainty spiked because of the conflict in the Middle East, optimism increased on average among retail and tourism contacts, while uncertainty decreased but remained elevated.
Manufacturing and Distribution
On average, manufacturing activity expanded slightly in recent months. However, a few contacts indicated slight or moderate declines in activity, a few noted large increases, and several each reported no change or a slight increase. Changes in capital expenditures, profits, and inventories also varied considerably, with small gains in each on average. The factors driving positive results included mergers-and-acquisitions activity (by a pharmaceuticals firm) and increased demand for precision manufacturing coming from the defense and automation industries. Sources of strain included rising freight and materials costs, as well as labor scarcity. The outlook improved slightly on balance, as two-thirds of contacts reported either increased optimism or no change in expectations, and uncertainty diminished on average.
Nonfinancial Services
Nonfinancial services activity increased slightly overall. Legal and accounting firms reported modest revenue gains, while revenues were flat or up a bit among staffing firms. A contact from one of the region's public universities said the school experienced a moderate increase in student enrollment and slight increases in tuition revenues but also received less state funding. Hospitals in Maine saw stable patient volumes and noted an uptick in capital expenditure that was expected to persist for the second half of the year. The outlook was unchanged for most contacts, but several reported increased optimism, and one felt that the economy in general was gaining momentum.
Financial Services
Bank loan volume and loan demand increased slightly, while credit standards were unchanged. Loan pricing was stable on average, but some banks reported slight decreases and others slight increases in loan rates. Nonperforming loans were unchanged at most banking contacts but rose slightly in one case, and some contacts said they were monitoring delinquencies in light of the strain of elevated inflation on household balance sheets. Despite those concerns, the banking outlook was stable or slightly more optimistic in some cases. A large financial services firm reported flat revenues and profits and expected no major changes in activity going forward.
Real Estate and Construction
Nonresidential leasing activity was about flat on balance, with stable retail leasing, diminished industrial leasing, and a slight increase in office leasing. Some contacts noted small declines in office vacancies and increased office property sales. A Boston contact described renewed interest in retail properties and senior housing among institutional investors. Closed sales of residential properties decreased moderately in May from one year earlier. Nonetheless, home sales increased sharply in New Hampshire during the same period. Excluding New Hampshire, where the median single-family sale price rose moderately, single-family prices were flat on average, while condo prices (including New Hampshire) were down slightly on average. Multifamily leasing was stable, with rent increases in greater Boston still matching inflation. Both residential and nonresidential construction activity eased a bit, with contacts citing high construction costs as a deterrent. The outlook was mostly stable, but contacts cited the prospect of higher interest rates as a downside risk and, by contrast, expected multifamily sales and construction in Massachusetts to get a boost following the disqualification of a proposed rent control measure.
Community Perspectives
Contacts serving low- and moderate-income households reported increased demand for assistance along several dimensions, as families struggled with persistently high prices of food, housing, and transportation. Reliance on food pantries increased further, transportation assistance expanded, and nonprofit organizations received more requests for help with housing payments and health-care supplies. Lower-income consumers reportedly added credit card debt to pay for essential goods. However, some nonprofits reported greater financial stability in 2026 after a turbulent 2025. Nonetheless, many struggled with tight budgets in the face of rising costs and reduced funding, making it difficult to meet the growing needs of communities they serve.
For more information about District economic conditions visit: https://www.bostonfed.org/in-the-region.aspx.
* * *
Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202607-boston.htm
* * *
Summary of Economic Activity
Economic activity continued to expand at a slight pace. Consumer spending rose modestly, supported by the World Cup soccer tournament, but many consumers showed heightened price sensitivity. Manufacturing activity grew slightly, with strong demand from defense and automation. Bank loan volume ticked up, as did nonfinancial services activity. Real estate activity was mixed, with stable nonresidential leasing, softer construction activity, and moderate ... Show Full Article WASHINGTON, July 27 -- The Federal Reserve Bank of Boston issued the following Beige Book on July 15, 2026: * * * Summary of Economic Activity Economic activity continued to expand at a slight pace. Consumer spending rose modestly, supported by the World Cup soccer tournament, but many consumers showed heightened price sensitivity. Manufacturing activity grew slightly, with strong demand from defense and automation. Bank loan volume ticked up, as did nonfinancial services activity. Real estate activity was mixed, with stable nonresidential leasing, softer construction activity, and moderatedeclines in home sales. Nonprofits faced difficulties meeting growing client needs. Employment was unchanged, as labor demand remained healthy despite isolated layoffs. Wages rose slightly, but manufacturers reported increased wage competition. Output prices rose slightly, and cost pressures remained widespread. The outlook improved marginally, and perceived uncertainty decreased.
Labor Markets
Employment was roughly unchanged overall. Manufacturers reported slight increases in payrolls, and retail and hospitality contacts said seasonal hires exceeded last summer's levels. Services employment was mostly stable, although one firm reported modest layoffs of white-collar staff because of AI-related efficiency gains. In construction, apprentices experienced layoffs, while more experienced workers held their jobs. Wages rose slightly on average, with increases noted for manufacturing, retail, and hospitality workers; wages were flat otherwise. Job openings inched up, but employers reportedly remained cautious, with hiring proceeding at a very slow pace. Grocery and tourism contacts reported easier hiring compared with last summer but noted the market remained tight in spots. Manufacturers experienced a small increase in applications but, in some cases, struggled to hire and retain workers because of increased wage competition. Most contacts did not expect major changes in headcounts going forward, although one hospitality contact planned to increase hiring moderately.
Prices
Output prices increased slightly on average. Construction prices rose modestly, driven by further increases in input costs. Manufacturers likewise cited mounting cost pressures as the source of modest price increases. A large financial services firm left prices unchanged despite facing moderate cost increases, and nonfinancial services prices were mostly unchanged. Lodging prices rose slightly year-over-year at high-end resorts; meanwhile, more budget-friendly accommodations reported increased price sensitivity among consumers and kept room rates flat despite increased costs. A grocery operator reported modest price increases and observed heightened price sensitivity. Energy costs remained elevated, although one contact mentioned a modest decline in diesel prices, partly alleviating cost pressures. Pricing plans for the near term varied across firms. While multiple firms anticipated holding prices steady, hospital prices were expected to rise slightly, as was tuition for at least one public university.
Consumer Spending
Consumer spending increased modestly overall in recent months, as tourism spending posted modest gains and retail spending grew slightly. However, several contacts mentioned discretionary spending was down for households with modest means owing to high necessities prices. Boston hotel contacts said World Cup bookings were initially below expectations but rose to meet them after room rates were reduced to seasonally typical levels. Bars in Greater Boston also saw a marked uptick in beer sales, which they attributed to the World Cup. The volume of Canadian travelers increased slightly from last summer, but remained well below historical levels, disproportionately affecting some towns in coastal Maine and northern Vermont. Other contacts from Maine and Vermont noted continued strength in luxury travel and softer demand for budget-friendly travel. A grocery chain operator reported overall sales that were softer than anticipated but said higher beef prices had led to record sales of chicken and pork as customers traded down to those lower-priced items. Relative to the spring, when uncertainty spiked because of the conflict in the Middle East, optimism increased on average among retail and tourism contacts, while uncertainty decreased but remained elevated.
Manufacturing and Distribution
On average, manufacturing activity expanded slightly in recent months. However, a few contacts indicated slight or moderate declines in activity, a few noted large increases, and several each reported no change or a slight increase. Changes in capital expenditures, profits, and inventories also varied considerably, with small gains in each on average. The factors driving positive results included mergers-and-acquisitions activity (by a pharmaceuticals firm) and increased demand for precision manufacturing coming from the defense and automation industries. Sources of strain included rising freight and materials costs, as well as labor scarcity. The outlook improved slightly on balance, as two-thirds of contacts reported either increased optimism or no change in expectations, and uncertainty diminished on average.
Nonfinancial Services
Nonfinancial services activity increased slightly overall. Legal and accounting firms reported modest revenue gains, while revenues were flat or up a bit among staffing firms. A contact from one of the region's public universities said the school experienced a moderate increase in student enrollment and slight increases in tuition revenues but also received less state funding. Hospitals in Maine saw stable patient volumes and noted an uptick in capital expenditure that was expected to persist for the second half of the year. The outlook was unchanged for most contacts, but several reported increased optimism, and one felt that the economy in general was gaining momentum.
Financial Services
Bank loan volume and loan demand increased slightly, while credit standards were unchanged. Loan pricing was stable on average, but some banks reported slight decreases and others slight increases in loan rates. Nonperforming loans were unchanged at most banking contacts but rose slightly in one case, and some contacts said they were monitoring delinquencies in light of the strain of elevated inflation on household balance sheets. Despite those concerns, the banking outlook was stable or slightly more optimistic in some cases. A large financial services firm reported flat revenues and profits and expected no major changes in activity going forward.
Real Estate and Construction
Nonresidential leasing activity was about flat on balance, with stable retail leasing, diminished industrial leasing, and a slight increase in office leasing. Some contacts noted small declines in office vacancies and increased office property sales. A Boston contact described renewed interest in retail properties and senior housing among institutional investors. Closed sales of residential properties decreased moderately in May from one year earlier. Nonetheless, home sales increased sharply in New Hampshire during the same period. Excluding New Hampshire, where the median single-family sale price rose moderately, single-family prices were flat on average, while condo prices (including New Hampshire) were down slightly on average. Multifamily leasing was stable, with rent increases in greater Boston still matching inflation. Both residential and nonresidential construction activity eased a bit, with contacts citing high construction costs as a deterrent. The outlook was mostly stable, but contacts cited the prospect of higher interest rates as a downside risk and, by contrast, expected multifamily sales and construction in Massachusetts to get a boost following the disqualification of a proposed rent control measure.
Community Perspectives
Contacts serving low- and moderate-income households reported increased demand for assistance along several dimensions, as families struggled with persistently high prices of food, housing, and transportation. Reliance on food pantries increased further, transportation assistance expanded, and nonprofit organizations received more requests for help with housing payments and health-care supplies. Lower-income consumers reportedly added credit card debt to pay for essential goods. However, some nonprofits reported greater financial stability in 2026 after a turbulent 2025. Nonetheless, many struggled with tight budgets in the face of rising costs and reduced funding, making it difficult to meet the growing needs of communities they serve.
For more information about District economic conditions visit: https://www.bostonfed.org/in-the-region.aspx.
* * *
Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202607-boston.htm
Federal Reserve Bank of Atlanta Issues Beige Book on on July 15, 2026
WASHINGTON, July 27 -- The Federal Reserve Bank of Atlanta issued the following Beige Book on July 15, 2026:
* * *
Summary of Economic Activity
The economy of the Sixth District continued to expand at a modest pace. Employment levels remained flat to slightly down, and wages grew by low single digits. Prices and input costs rose moderately. Consumer spending, along with travel and tourism, increased modestly. Residential and commercial real estate conditions were little changed, on balance. Demand for transportation and manufacturing sectors continued to pick up. Loan growth was driven by consumer ... Show Full Article WASHINGTON, July 27 -- The Federal Reserve Bank of Atlanta issued the following Beige Book on July 15, 2026: * * * Summary of Economic Activity The economy of the Sixth District continued to expand at a modest pace. Employment levels remained flat to slightly down, and wages grew by low single digits. Prices and input costs rose moderately. Consumer spending, along with travel and tourism, increased modestly. Residential and commercial real estate conditions were little changed, on balance. Demand for transportation and manufacturing sectors continued to pick up. Loan growth was driven by consumerand specialized lending. Energy demand was steady, but agricultural conditions deteriorated.
Labor Markets
Employment levels were flat to slightly down over the reporting period as most firms continued to keep head counts even or adjust downward through attrition and minimal backfilling of roles. Reports of layoffs remained limited. Some businesses in industries like health care and data center construction reported hiring for growth or for specialized skills. Utilization of AI broadened, with more contacts describing deployments of AI tools and automation to boost employee productivity and efficiency. However, most do not expect these efforts to lead to significant workforce reductions in the near term.
Most contacts reported moderate annual wage increases in the 2-3 percent range, though stronger wage pressures continued for in-demand or technical roles.
Prices
Prices and nonlabor costs rose moderately. Contacts continued to report elevated fuel and transportation costs, and several firms noted large price increases in petrochemical derivatives like resins and adhesives as the Middle East conflict persisted. Fertilizer costs continued to rise sharply, agricultural equipment prices have tripled in some cases, and insurance costs have increased substantially, placing additional pressure on farmers' margins. In commercial construction, the accelerated build-out of the infrastructure for emerging AI technologies contributed to supply constraints and higher prices for steel, transformers, and other machinery. Despite these conditions, some firms mitigated cost pressures by adding contract escalators or by leveraging supply chain relationships developed during the pandemic and previous tariff cycles. Restauranteurs and retailers reported persistent price sensitivity among households that limited pricing power, allowing for only highly selective increases.
Consumer Spending
Consumer spending expanded at a modest pace. Retailers indicated that higher-income households generally maintained steady spending levels, though a few noted emerging signs of softening within this group. Lower- and middle-income consumers continued to display signs of increasing financial stress, including trading down, buying less but shopping more frequently, and pulling back on discretionary items. Restaurants reported shifts toward value among higher-end customers, with some diners opting to bring their own wine and pay a corkage fee rather than purchasing wine with their meal. New auto sales softened slightly amid affordability challenges and higher interest rates.
Tourism activity in the District grew modestly, in part due to World Cup activities in Miami and Atlanta, which bolstered both hotel and short-term rental performance across those markets. Many leisure travelers remained highly budget conscious, contributing to steadier demand in markets and properties that emphasize affordability and perceived value. Luxury and upscale travel were consistent with the prolonged trend of strong growth in these segments. Cruise activity was solid, though several contacts noted that year-over-year onboard spending was flat to slightly down. Overall, travel held firm, particularly on weekends, but contacts reported greater price sensitivity and shorter booking windows.
Construction and Real Estate
Home sales improved modestly throughout most of the District as inventory growth moderated amid rising delistings, of which Atlanta recorded the highest rate among major U.S. metropolitan areas. Home prices remained relatively flat, and fewer markets saw homes selling above asking price relative to other parts of the country. While aggressive incentives from home builders led to an uptick in new home sales, economic uncertainty and rising mortgage rates resulted in builders adjusting revenue and sales expectations downward, streamlining operations, and reducing excess labor costs.
Commercial real estate conditions were flat in aggregate with sector-specific variation. The flight to quality in office space persisted, and vacancy rates in Class A space fell into single digits for the first time since 2020. Contacts noted a shift toward reducing office footprints in favor of upgraded amenities. The retail sector was stable, with the supply of retail space keeping pace with demand. Multifamily contacts continued to report elevated vacancy rates and concessions. In the industrial sector, new supply slightly outpaced demand, and traditional warehousing experienced softer demand compared to tech-driven logistics space.
Transportation
Transportation demand rose modestly. Trucking brokerages reported stable to improving conditions as pandemic-era excess capacity unwound, with volumes exceeding year-earlier levels for the first time since 2021. Freight growth was concentrated in data center construction, machinery, aerospace, and defense, while housing-related shipments remained soft. The tighter trucking market and elevated energy prices created tailwinds for railroads as shippers converted to rail. Freight forwarders saw renewed growth following tariff disruptions, though some shifted shipping strategies toward higher-margin business-to-business and health-care segments. Contacts shared cautious optimism stemming from emerging manufacturing activity; however, trade policy uncertainty, along with elevated interest rates and insurance costs, pose risks to the outlook.
Manufacturing
On balance, manufacturing activity grew at a modest pace. A producer of information solutions equipment and software reported strong, broad-based growth, with revenue being driven by digitization and AI adoption. Some food manufacturers reported gains in market share despite implementing substantial price increases. Steel fabricators experienced strong growth driven by the active LNG market; however, steel production tied to real estate construction softened because of rising cost pressures and uncertainty.
Banking and Finance
Overall modest loan growth was supported primarily by consumer lending, even as auto and credit card lending ticked down. Niche and specialized lending were also strong. An increase in short-term personal loans or "buy now, pay later" financing pointed to ongoing household financial strain. Commercial and industrial lending declined, and contacts noted many businesses deferred investment as economic and geopolitical uncertainty continued. Cash-to-assets ratios fell moderately, implying a reallocation of liquidity into investments or dividends.
Energy
Energy sector conditions remained stable despite the conflict in the Middle East. Firms continued to report rising input costs affecting both oil production and oilfield services, adding pressure to operating margins. Several contacts noted that softening global demand contributed to recent crude price declines, although most emphasized that ongoing uncertainty surrounding the Strait of Hormuz disrupted shipments and kept inventories tight. Industrial energy demand remained strong, largely because of accelerating investments in AI-related infrastructure across the Southeast. On balance, expectations point to steady activity, though cost pressures will continue to shape planning and near-term outlooks.
Agriculture
Agricultural conditions across the region were highly stressed amid mixed demand, with multiple contacts reporting weak commodity prices, escalating input costs, and tightening credit. Row-crop farmers faced severe financial strain as fuel costs remained elevated, tariffs and international market shifts resulted in depressed soybean prices, and yields continued to fall short of covering operating debt, leading many producers to roll over losses for another year. Citrus producers reported declining demand due to concerns about sugar and sharply rising orange-juice prices, though demand for fresh fruit was strong.
For more information about District economic conditions visit: https://www.atlantafed.org/what-we-study/regional-economy.
* * *
Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202607-atlanta.htm
* * *
Summary of Economic Activity
The economy of the Sixth District continued to expand at a modest pace. Employment levels remained flat to slightly down, and wages grew by low single digits. Prices and input costs rose moderately. Consumer spending, along with travel and tourism, increased modestly. Residential and commercial real estate conditions were little changed, on balance. Demand for transportation and manufacturing sectors continued to pick up. Loan growth was driven by consumer ... Show Full Article WASHINGTON, July 27 -- The Federal Reserve Bank of Atlanta issued the following Beige Book on July 15, 2026: * * * Summary of Economic Activity The economy of the Sixth District continued to expand at a modest pace. Employment levels remained flat to slightly down, and wages grew by low single digits. Prices and input costs rose moderately. Consumer spending, along with travel and tourism, increased modestly. Residential and commercial real estate conditions were little changed, on balance. Demand for transportation and manufacturing sectors continued to pick up. Loan growth was driven by consumerand specialized lending. Energy demand was steady, but agricultural conditions deteriorated.
Labor Markets
Employment levels were flat to slightly down over the reporting period as most firms continued to keep head counts even or adjust downward through attrition and minimal backfilling of roles. Reports of layoffs remained limited. Some businesses in industries like health care and data center construction reported hiring for growth or for specialized skills. Utilization of AI broadened, with more contacts describing deployments of AI tools and automation to boost employee productivity and efficiency. However, most do not expect these efforts to lead to significant workforce reductions in the near term.
Most contacts reported moderate annual wage increases in the 2-3 percent range, though stronger wage pressures continued for in-demand or technical roles.
Prices
Prices and nonlabor costs rose moderately. Contacts continued to report elevated fuel and transportation costs, and several firms noted large price increases in petrochemical derivatives like resins and adhesives as the Middle East conflict persisted. Fertilizer costs continued to rise sharply, agricultural equipment prices have tripled in some cases, and insurance costs have increased substantially, placing additional pressure on farmers' margins. In commercial construction, the accelerated build-out of the infrastructure for emerging AI technologies contributed to supply constraints and higher prices for steel, transformers, and other machinery. Despite these conditions, some firms mitigated cost pressures by adding contract escalators or by leveraging supply chain relationships developed during the pandemic and previous tariff cycles. Restauranteurs and retailers reported persistent price sensitivity among households that limited pricing power, allowing for only highly selective increases.
Consumer Spending
Consumer spending expanded at a modest pace. Retailers indicated that higher-income households generally maintained steady spending levels, though a few noted emerging signs of softening within this group. Lower- and middle-income consumers continued to display signs of increasing financial stress, including trading down, buying less but shopping more frequently, and pulling back on discretionary items. Restaurants reported shifts toward value among higher-end customers, with some diners opting to bring their own wine and pay a corkage fee rather than purchasing wine with their meal. New auto sales softened slightly amid affordability challenges and higher interest rates.
Tourism activity in the District grew modestly, in part due to World Cup activities in Miami and Atlanta, which bolstered both hotel and short-term rental performance across those markets. Many leisure travelers remained highly budget conscious, contributing to steadier demand in markets and properties that emphasize affordability and perceived value. Luxury and upscale travel were consistent with the prolonged trend of strong growth in these segments. Cruise activity was solid, though several contacts noted that year-over-year onboard spending was flat to slightly down. Overall, travel held firm, particularly on weekends, but contacts reported greater price sensitivity and shorter booking windows.
Construction and Real Estate
Home sales improved modestly throughout most of the District as inventory growth moderated amid rising delistings, of which Atlanta recorded the highest rate among major U.S. metropolitan areas. Home prices remained relatively flat, and fewer markets saw homes selling above asking price relative to other parts of the country. While aggressive incentives from home builders led to an uptick in new home sales, economic uncertainty and rising mortgage rates resulted in builders adjusting revenue and sales expectations downward, streamlining operations, and reducing excess labor costs.
Commercial real estate conditions were flat in aggregate with sector-specific variation. The flight to quality in office space persisted, and vacancy rates in Class A space fell into single digits for the first time since 2020. Contacts noted a shift toward reducing office footprints in favor of upgraded amenities. The retail sector was stable, with the supply of retail space keeping pace with demand. Multifamily contacts continued to report elevated vacancy rates and concessions. In the industrial sector, new supply slightly outpaced demand, and traditional warehousing experienced softer demand compared to tech-driven logistics space.
Transportation
Transportation demand rose modestly. Trucking brokerages reported stable to improving conditions as pandemic-era excess capacity unwound, with volumes exceeding year-earlier levels for the first time since 2021. Freight growth was concentrated in data center construction, machinery, aerospace, and defense, while housing-related shipments remained soft. The tighter trucking market and elevated energy prices created tailwinds for railroads as shippers converted to rail. Freight forwarders saw renewed growth following tariff disruptions, though some shifted shipping strategies toward higher-margin business-to-business and health-care segments. Contacts shared cautious optimism stemming from emerging manufacturing activity; however, trade policy uncertainty, along with elevated interest rates and insurance costs, pose risks to the outlook.
Manufacturing
On balance, manufacturing activity grew at a modest pace. A producer of information solutions equipment and software reported strong, broad-based growth, with revenue being driven by digitization and AI adoption. Some food manufacturers reported gains in market share despite implementing substantial price increases. Steel fabricators experienced strong growth driven by the active LNG market; however, steel production tied to real estate construction softened because of rising cost pressures and uncertainty.
Banking and Finance
Overall modest loan growth was supported primarily by consumer lending, even as auto and credit card lending ticked down. Niche and specialized lending were also strong. An increase in short-term personal loans or "buy now, pay later" financing pointed to ongoing household financial strain. Commercial and industrial lending declined, and contacts noted many businesses deferred investment as economic and geopolitical uncertainty continued. Cash-to-assets ratios fell moderately, implying a reallocation of liquidity into investments or dividends.
Energy
Energy sector conditions remained stable despite the conflict in the Middle East. Firms continued to report rising input costs affecting both oil production and oilfield services, adding pressure to operating margins. Several contacts noted that softening global demand contributed to recent crude price declines, although most emphasized that ongoing uncertainty surrounding the Strait of Hormuz disrupted shipments and kept inventories tight. Industrial energy demand remained strong, largely because of accelerating investments in AI-related infrastructure across the Southeast. On balance, expectations point to steady activity, though cost pressures will continue to shape planning and near-term outlooks.
Agriculture
Agricultural conditions across the region were highly stressed amid mixed demand, with multiple contacts reporting weak commodity prices, escalating input costs, and tightening credit. Row-crop farmers faced severe financial strain as fuel costs remained elevated, tariffs and international market shifts resulted in depressed soybean prices, and yields continued to fall short of covering operating debt, leading many producers to roll over losses for another year. Citrus producers reported declining demand due to concerns about sugar and sharply rising orange-juice prices, though demand for fresh fruit was strong.
For more information about District economic conditions visit: https://www.atlantafed.org/what-we-study/regional-economy.
* * *
Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202607-atlanta.htm
Federal Reserve Bank Issues National Summary of Beige Book on July 15, 2026
WASHINGTON, July 27 -- The Federal Reserve Bank of issued the following national summary of the Beige Book on July 15, 2026:
* * *
National Summary
Overall Economic Activity
Economic activity increased at a slight to moderate pace in eleven of twelve Federal Reserve Districts in late May and June, while one District reported no change. The pace of growth was quite close to that of last period, when activity expanded in ten Districts, was flat in one, and down in one. Consumer spending edged up as higher prices, particularly for fuel, dampened sales in other categories. Several Districts noted ... Show Full Article WASHINGTON, July 27 -- The Federal Reserve Bank of issued the following national summary of the Beige Book on July 15, 2026: * * * National Summary Overall Economic Activity Economic activity increased at a slight to moderate pace in eleven of twelve Federal Reserve Districts in late May and June, while one District reported no change. The pace of growth was quite close to that of last period, when activity expanded in ten Districts, was flat in one, and down in one. Consumer spending edged up as higher prices, particularly for fuel, dampened sales in other categories. Several Districts noteddeclines in spending on discretionary items or trading down to more affordable varieties. Tourism was up, with some Districts receiving a boost from World Cup visitors. Auto dealers reported little change in sales, but spending on repairs grew as consumers held onto vehicles for longer. Agricultural conditions deteriorated due to lower commodity prices, higher input costs, and tighter credit. In the energy sector, oil and gas drilling increased. Manufacturing production grew modestly to moderately in most Districts, led by stronger orders from the data center, machinery, and defense sectors. Manufacturers in several Districts said supply chain issues were more common. Construction and real estate activity increased slightly overall, with several Districts noting growth in data center building. Financial conditions were stable on net, and commercial and consumer loan volumes were both up modestly. Commercial loan quality was stable, but consumer loan quality ticked down. Transportation activity increased modestly amidst ongoing supply chain changes related to higher tariffs and the conflict in the Middle East. Overall, activity in other service industries also was up modestly, with Districts highlighting growth in health care and professional services. Social service providers were adjusting to funding declines while demand for basic supports--housing, food, health care--remained high. Contacts generally expected the economy to continue to expand in the coming months, but several Districts noted elevated uncertainty in the outlook for fuel costs.
Labor Markets
Employment rose on balance, with five Districts showing modest, moderate, or solid gains in employment, and with seven Districts experiencing little to no change. In the previous report, only one District had modest, moderate, or solid employment gains. Employment rose in a variety of industries, including manufacturing, construction, and retail. Skilled workers were difficult to find in a range of fields, notably technicians and tradespeople. Though there were reports of lower employment in a couple of Districts, the declines were small. Wage growth was modest to moderate in most Districts, though two saw only slight wage increases. Some wage increases were attributed to increased competition for skilled workers. A few Districts noted that firms had increased their usage of AI, either in the hiring and screening of potential employees or to boost worker productivity.
Prices
Prices increased moderately overall, with nine Districts reporting moderate growth, two robust growth, and one slight growth; compared with the last reporting period, price growth was the same or slower in all Districts. Non-labor input costs increased for a variety of industries--including services, construction, and manufacturing--and reflected in part higher costs for energy, transportation, and raw materials. Some contacts tied these cost increases to the conflict in the Middle East; others mentioned tariffs. Consumer prices continued to rise, and a few Districts said contacts saw greater price sensitivity among their customers. A couple of Districts reported that selling prices grew less than input costs over the period, crimping margins. Expectations for price growth over the coming months varied across Districts, with contacts in some expecting inflation to continue at its current pace, while contacts in others expected inflation to slow, in part due to falling fuel prices.
Highlights by Federal Reserve District
Boston
Economic activity expanded slightly. Employment was flat, with some isolated layoffs, and wages rose at a slight pace. Cost pressures remained elevated, but output prices increased only slightly. Consumer spending rose modestly overall, buoyed by the World Cup, but discretionary spending softened among low- and moderate-income households. The outlook improved on balance.
New York
Economic activity increased modestly, as service sector activity picked up after a long period of weakness. Employment increased modestly, with larger firms starting to hire for growth. Input prices rose strongly under pressure from tariffs and energy costs, though selling price increases remained moderate. Businesses became more optimistic.
Philadelphia
Economic activity rose slightly in the current period, up from a slight decrease in the last period. Nonmanufacturing activity picked up, while manufacturing activity again rose modestly. Employment again declined somewhat. Wage inflation held steady at a modest pace, and prices continued to grow moderately. Manufacturers have more widespread expectations for future growth than nonmanufacturers.
Cleveland
Fourth District business activity increased modestly, with faster growth anticipated in the coming months. Manufacturing demand rose moderately, while retailers continued to face soft demand due to higher fuel prices. Higher fuel costs filtered through to both selling prices and wage pressures. Selling prices rose at a robust pace.
Richmond
The regional economy expanded moderately this cycle as consumer spending continued to grow despite some shifts in consumer behavior, even among higher income consumers. Business activity was generally reported as modestly growing, and employment grew modestly as well. Manufacturing output also increased modestly while producer prices were little changed despite rising input costs. Overall price growth remained moderate.
Atlanta
Economic activity grew modestly. Employment levels remained largely flat. Wages rose moderately, and prices increased at a moderate pace. Consumer spending expanded modestly. Residential and commercial real estate were little changed. Transportation and manufacturing rose modestly. Energy activity was stable, but agricultural conditions worsened. Lending increased at a modest pace.
Chicago
Economic activity in the Seventh District increased modestly over the reporting period. Manufacturing demand rose moderately; employment rose modestly; consumer spending, business spending, and construction and real estate activity increased slightly; and nonbusiness contacts saw a small increase in economic activity. Prices rose moderately, wages were up modestly, and financial conditions tightened slightly. Farm income expectations for 2026 edged down.
St. Louis
Economic activity has slightly increased. Employment was unchanged, and wage growth was moderate. Prices rose at a robust pace, and increases were widespread. The outlook remains unchanged, with contacts noting that persistent uncertainty and elevated fuel costs continue to weigh on overall conditions.
Minneapolis
The District economy expanded slightly. Employment grew modestly, and contacts reported that labor availability increased. Wage growth was modest to moderate. Prices increased moderately, but input price pressure remained elevated. Retail contacts reported greater discretion among consumers. Services, construction, commercial real estate, and manufacturing activity increased. Agricultural conditions deteriorated.
Kansas City
Economic activity expanded slightly within the Tenth District, which was supported by increased manufacturing activity. Inflationary pressures continued to compress profit margins, prompting firms to make pricing and investment adjustments. Contacts expect slight growth over the next six months.
Dallas
Economic activity in the Eleventh District rose moderately. Growth picked up in the banking, energy, and service sectors but moderated in manufacturing. Retail sales improved, and the real estate sector was mixed. Employment strengthened, and wage pressures rose. Outlooks were stable to positive, though inflation, the level of demand, and geopolitical and domestic policy uncertainty remained sources of concern.
San Francisco
Economic activity was stable but somewhat muted. Employers held head counts steady and invested further in AI. Prices increased moderately, while wages rose slightly. Retail sales and demand for services edged down. Manufacturing activity rose modestly, while agriculture activity was unchanged but weak. Conditions were steady in real estate and financial services.
Note: This report was prepared at the Federal Reserve Bank of Chicago based on information collected on or before July 6, 2026. This document summarizes comments received from contacts outside the Federal Reserve System and is not a commentary on the views of Federal Reserve officials.
* * *
Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202607-summary.htm
* * *
National Summary
Overall Economic Activity
Economic activity increased at a slight to moderate pace in eleven of twelve Federal Reserve Districts in late May and June, while one District reported no change. The pace of growth was quite close to that of last period, when activity expanded in ten Districts, was flat in one, and down in one. Consumer spending edged up as higher prices, particularly for fuel, dampened sales in other categories. Several Districts noted ... Show Full Article WASHINGTON, July 27 -- The Federal Reserve Bank of issued the following national summary of the Beige Book on July 15, 2026: * * * National Summary Overall Economic Activity Economic activity increased at a slight to moderate pace in eleven of twelve Federal Reserve Districts in late May and June, while one District reported no change. The pace of growth was quite close to that of last period, when activity expanded in ten Districts, was flat in one, and down in one. Consumer spending edged up as higher prices, particularly for fuel, dampened sales in other categories. Several Districts noteddeclines in spending on discretionary items or trading down to more affordable varieties. Tourism was up, with some Districts receiving a boost from World Cup visitors. Auto dealers reported little change in sales, but spending on repairs grew as consumers held onto vehicles for longer. Agricultural conditions deteriorated due to lower commodity prices, higher input costs, and tighter credit. In the energy sector, oil and gas drilling increased. Manufacturing production grew modestly to moderately in most Districts, led by stronger orders from the data center, machinery, and defense sectors. Manufacturers in several Districts said supply chain issues were more common. Construction and real estate activity increased slightly overall, with several Districts noting growth in data center building. Financial conditions were stable on net, and commercial and consumer loan volumes were both up modestly. Commercial loan quality was stable, but consumer loan quality ticked down. Transportation activity increased modestly amidst ongoing supply chain changes related to higher tariffs and the conflict in the Middle East. Overall, activity in other service industries also was up modestly, with Districts highlighting growth in health care and professional services. Social service providers were adjusting to funding declines while demand for basic supports--housing, food, health care--remained high. Contacts generally expected the economy to continue to expand in the coming months, but several Districts noted elevated uncertainty in the outlook for fuel costs.
Labor Markets
Employment rose on balance, with five Districts showing modest, moderate, or solid gains in employment, and with seven Districts experiencing little to no change. In the previous report, only one District had modest, moderate, or solid employment gains. Employment rose in a variety of industries, including manufacturing, construction, and retail. Skilled workers were difficult to find in a range of fields, notably technicians and tradespeople. Though there were reports of lower employment in a couple of Districts, the declines were small. Wage growth was modest to moderate in most Districts, though two saw only slight wage increases. Some wage increases were attributed to increased competition for skilled workers. A few Districts noted that firms had increased their usage of AI, either in the hiring and screening of potential employees or to boost worker productivity.
Prices
Prices increased moderately overall, with nine Districts reporting moderate growth, two robust growth, and one slight growth; compared with the last reporting period, price growth was the same or slower in all Districts. Non-labor input costs increased for a variety of industries--including services, construction, and manufacturing--and reflected in part higher costs for energy, transportation, and raw materials. Some contacts tied these cost increases to the conflict in the Middle East; others mentioned tariffs. Consumer prices continued to rise, and a few Districts said contacts saw greater price sensitivity among their customers. A couple of Districts reported that selling prices grew less than input costs over the period, crimping margins. Expectations for price growth over the coming months varied across Districts, with contacts in some expecting inflation to continue at its current pace, while contacts in others expected inflation to slow, in part due to falling fuel prices.
Highlights by Federal Reserve District
Boston
Economic activity expanded slightly. Employment was flat, with some isolated layoffs, and wages rose at a slight pace. Cost pressures remained elevated, but output prices increased only slightly. Consumer spending rose modestly overall, buoyed by the World Cup, but discretionary spending softened among low- and moderate-income households. The outlook improved on balance.
New York
Economic activity increased modestly, as service sector activity picked up after a long period of weakness. Employment increased modestly, with larger firms starting to hire for growth. Input prices rose strongly under pressure from tariffs and energy costs, though selling price increases remained moderate. Businesses became more optimistic.
Philadelphia
Economic activity rose slightly in the current period, up from a slight decrease in the last period. Nonmanufacturing activity picked up, while manufacturing activity again rose modestly. Employment again declined somewhat. Wage inflation held steady at a modest pace, and prices continued to grow moderately. Manufacturers have more widespread expectations for future growth than nonmanufacturers.
Cleveland
Fourth District business activity increased modestly, with faster growth anticipated in the coming months. Manufacturing demand rose moderately, while retailers continued to face soft demand due to higher fuel prices. Higher fuel costs filtered through to both selling prices and wage pressures. Selling prices rose at a robust pace.
Richmond
The regional economy expanded moderately this cycle as consumer spending continued to grow despite some shifts in consumer behavior, even among higher income consumers. Business activity was generally reported as modestly growing, and employment grew modestly as well. Manufacturing output also increased modestly while producer prices were little changed despite rising input costs. Overall price growth remained moderate.
Atlanta
Economic activity grew modestly. Employment levels remained largely flat. Wages rose moderately, and prices increased at a moderate pace. Consumer spending expanded modestly. Residential and commercial real estate were little changed. Transportation and manufacturing rose modestly. Energy activity was stable, but agricultural conditions worsened. Lending increased at a modest pace.
Chicago
Economic activity in the Seventh District increased modestly over the reporting period. Manufacturing demand rose moderately; employment rose modestly; consumer spending, business spending, and construction and real estate activity increased slightly; and nonbusiness contacts saw a small increase in economic activity. Prices rose moderately, wages were up modestly, and financial conditions tightened slightly. Farm income expectations for 2026 edged down.
St. Louis
Economic activity has slightly increased. Employment was unchanged, and wage growth was moderate. Prices rose at a robust pace, and increases were widespread. The outlook remains unchanged, with contacts noting that persistent uncertainty and elevated fuel costs continue to weigh on overall conditions.
Minneapolis
The District economy expanded slightly. Employment grew modestly, and contacts reported that labor availability increased. Wage growth was modest to moderate. Prices increased moderately, but input price pressure remained elevated. Retail contacts reported greater discretion among consumers. Services, construction, commercial real estate, and manufacturing activity increased. Agricultural conditions deteriorated.
Kansas City
Economic activity expanded slightly within the Tenth District, which was supported by increased manufacturing activity. Inflationary pressures continued to compress profit margins, prompting firms to make pricing and investment adjustments. Contacts expect slight growth over the next six months.
Dallas
Economic activity in the Eleventh District rose moderately. Growth picked up in the banking, energy, and service sectors but moderated in manufacturing. Retail sales improved, and the real estate sector was mixed. Employment strengthened, and wage pressures rose. Outlooks were stable to positive, though inflation, the level of demand, and geopolitical and domestic policy uncertainty remained sources of concern.
San Francisco
Economic activity was stable but somewhat muted. Employers held head counts steady and invested further in AI. Prices increased moderately, while wages rose slightly. Retail sales and demand for services edged down. Manufacturing activity rose modestly, while agriculture activity was unchanged but weak. Conditions were steady in real estate and financial services.
Note: This report was prepared at the Federal Reserve Bank of Chicago based on information collected on or before July 6, 2026. This document summarizes comments received from contacts outside the Federal Reserve System and is not a commentary on the views of Federal Reserve officials.
* * *
Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202607-summary.htm