WASHINGTON–While economic activity was little changed since its prior report, “uncertainty around international trade policy was pervasive across reports,” the Federal Reserve’s April Beige Book states.
“The outlook in several Districts worsened considerably as economic uncertainty, particularly surrounding tariffs, rose,” the Fed said.
The Fed noted that just five of its districts saw slight growth, three districts noted activity was relatively unchanged, and the remaining four districts reported slight to modest declines.
“Non-auto consumer spending was lower overall; however, most Districts saw moderate to robust sales of vehicles and of some nondurables, generally attributed to a rush to purchase ahead of tariff-related price increases,” the Fed said. “Both leisure and business travel were down, on balance, and several Districts noted a decline in international visitors.”
Performance by Category
Among other findings in the new Beige Book:
- Home sales rose somewhat, and many Districts continued to note low inventory levels.
- Commercial real estate (CRE) activity expanded slightly as multifamily propped up the industrial and office sectors.
- Loan demand was flat to modestly higher, on net. Several Districts saw a deterioration in demand for non-financial services.
- Transportation activity expanded modestly, on balance.
- Manufacturing was mixed, but two-thirds of Districts said activity was little changed or had declined.
- The energy sector experienced modest growth.
- Agricultural conditions were fairly stable across multiple Districts.
- Cuts to federal grants and subsidies along with declines in philanthropic donations caused gaps in services provided by many community organizations.
- Employment was little changed to up slightly in most Districts, with one District reporting a modest increase, four reporting a slight increase, four reporting no change, and three reporting a slight decline. This is a slight deterioration from the previous report with a few more Districts reporting declines.
- Prices increased across Districts, with six characterizing price growth as modest and six characterizing it as moderate, similar to the previous report. Most Districts noted that firms expected elevated input cost growth resulting from tariffs.
The full report can be found here.
