TechFlow, October 16 — According to Jinshi Data, the Federal Reserve's Beige Book noted that economic activity has changed little since the previous report. Three districts reported slight to moderate growth in economic activity, five reported no change, and four reported a slight slowdown.
Overall consumer spending, especially on retail goods, declined slightly in recent weeks. However, strong demand for electric vehicles boosted auto sales in some regions ahead of the expiration of federal tax credits at the end of September. During the reporting period, demand from international tourists for leisure and hotel services weakened further, while domestic consumer demand remained largely unchanged. Nevertheless, spending by high-income households on luxury travel and accommodations remained robust. Several reports highlighted that, amid rising prices and increasing economic uncertainty, middle- and low-income households continue to seek discounts and promotions. Manufacturing activity varied by region, with most noting challenging conditions due to higher tariffs and weaker overall demand.
Agricultural, energy, and transportation activities across reporting districts generally declined. Conditions in financial services and other interest-rate-sensitive sectors such as residential and commercial real estate were mixed; some reports indicated improved business lending in recent weeks due to lower interest rates, while others continued to emphasize sluggish activity. Outlooks for future economic growth varied by region and industry. Sentiment improved in some areas, with expectations of rising demand over the next 6 to 12 months. However, many other regions continued to anticipate that heightened uncertainty would weigh on economic activity. One district highlighted the downside risks to economic growth posed by a prolonged government shutdown.
