The nationwide economic survey report released by the U.S. Federal Reserve shows that the uncertainty of the U.S. economy and policy remains high, adversely affecting businesses and households, with tariff increases adding pressure on costs and prices.
According to the U.S. Federal Reserve Act, the nation is divided into 12 Federal Reserve Districts, each with a Federal Reserve Bank. This report, compiled from the latest survey results of the 12 Federal Reserve Banks, is also known as the "Beige Book."
The report indicates that since late April, overall U.S. economic activity has seen a slight decline, with economic activity in half of the Federal Reserve Districts experiencing minor or moderate decreases. Economic and policy uncertainty in all Federal Reserve Districts remains high, leading to hesitancy and caution in decision-making by businesses and households. Manufacturing activity has mildly declined. Consumer spending has been mixed, with most Federal Reserve Districts reporting slight declines or no change, but some districts have seen increased spending on items expected to be affected by tariffs.
According to the report, overall, the outlook remains mildly pessimistic and uncertain, with relatively no change from the previous report.
In terms of employment, employment conditions in most Federal Reserve Districts have not changed significantly compared to before, but labor demand has declined in all districts, reflected in reduced work hours and overtime, hiring freezes, and planned layoffs.
Regarding prices, there has been a slight increase since late April. Expectations for future faster price increases are widespread across Federal Reserve Districts. Some districts anticipate significant or substantial cost increases. All districts report that tariff increases are placing upward pressure on costs and prices.
The Federal Reserve releases the "Beige Book" eight times a year, providing an overview of the national economic situation through the Federal Reserve Banks. This report is an important reference for the Federal Reserve's monetary policy meetings. The next Federal Reserve monetary policy meeting is scheduled for June 17-18.