Washington: US economic activity experienced "little" change in most of the 12 Federal Reserve districts since the previous report, as detailed in the Fed's latest Beige Book released on Wednesday. The report, which compiles insights from the central banks' 12 districts, indicated that economic activity in three districts saw "slight to modest" growth, five districts reported "no change," and four noted a "slight softening."

According to Anadolu Agency, the report highlighted that overall consumer spending, especially on retail goods, slightly decreased in recent weeks, although some districts reported a boost in auto sales due to strong demand for electric vehicles ahead of the expiration of a federal tax credit at the end of September. Additionally, low- and middle-income households continued to gravitate towards discounts and promotions amid rising prices and ongoing economic uncertainty.

The report also pointed out regional variations in manufacturing activity, with challenging conditions persisting due to high tariffs and weakening overall demand. Future economic growth expectations differ by region and sector, with ongoing uncertainty expected to continue impacting economic activity in most regions.

The report emphasized that employment levels have remained largely stable in recent weeks, while labor demand has been generally "muted" across regions and sectors. "In most Districts, more employers reported lowering head counts through layoffs and attrition, with contacts citing weaker demand, elevated economic uncertainty, and, in some cases, increased investment in artificial intelligence technologies," the report noted.

Meanwhile, prices have continued to rise during the reporting period. The report stated that "several District reports indicated that input costs increased at a faster pace due to higher import costs and the higher cost of services such as insurance, health care, and technology solutions." It also noted that tariff-induced input cost increases were prevalent in many regions, but the extent to which these costs were passed on to final prices varied. Some firms absorbed the higher costs to maintain market share, while others, particularly in manufacturing and retail sectors, passed the increased import costs onto customers.