The United States Federal Reserve (FED) has published its latest Beige Book report dated April 14, 2025.
According to the report, while only a limited change in overall economic activity was observed compared to the previous period, the economic outlook deteriorated significantly in many regions. In particular, ongoing uncertainties regarding international trade policies played an important role in this deterioration.
According to Beige Book, only five Fed regions recorded economic growth, four regions contracted and three regions saw no change in activity. The report emphasized that trade policy uncertainties are a prominent threat, weighing on the economy.
On the employment front, growth was limited. Hiring slowed in some sectors and there were signs of potential layoffs in public sector jobs. Wage increases were also more moderate than in the previous period, the report said.
Consumer spending generally declined, with a partial increase in sales of vehicles and non-durable goods due to purchases made before customs duties. The picture is more complex in the manufacturing sector, with some regions experiencing contraction while others remained stable.
The agricultural sector was generally stable, while home sales increased slightly, driven primarily by multifamily housing. However, construction activity remains weak.
On the price front, increases continued in most regions. Six regions described price increases as mild, and six regions as moderate. It was observed that companies tended to shorten their pricing strategies as input costs increased. Cost pressures, especially from tariffs, stand out as a new threat.
This report was prepared by the Atlanta Federal Reserve and is based on data collected through April 14, 2025.
*This is not investment advice.
