Economy

Beige Book: Economic growth hit by tighter consumer spending
Written by David Schollaert
September 4, 2024
Growth in the US economy continues to struggle in most districts. The Federal Reserve’s Beige Book report for August shows two-thirds of reporting districts flat or declining economic activity.
The Fed’s Sept. 4 Beige Book report said economic growth was flat or declining in nine of its 12 districts. That’s up from five districts that reported weak conditions in the mid-July report.
In the manufacturing sector, activity declined in most districts, with two reporting that “declines were part of ongoing contractions in the sector.”
Some districts mentioned lower auto sales due to high interest rates, while others noted increases in sales despite elevated rates.
The employment rate across all districts held steady but consumer spending ticked down in most districts, the survey found.
Prices increased modestly and wage growth was modest, according to the report. And increases in nonlabor input costs and selling prices were tame.
The Beige Book is a summary report of commentary on current economic conditions across the Federal Reserve’s 12 districts. It really is a book—it includes a ton of information. You can access the report for a deeper dive into economic activity in specific regions across the country.
Below is a summary of three of the districts, with a focus on manufacturing.
Philadelphia district
In the Philadelphia district, business activity declined slightly after rising modestly last period. Employment appeared to decline slightly, while consumer spending edged down.
Nonmanufacturing activity held steady. Wage growth continued at a modest pace, as did reported rises in input costs and prices. Expectations for future growth remained slightly positive overall, especially in manufacturing.
Chicago district
In the Chicago district, which includes northern Illinois and Indiana, southern Wisconsin, Michigan, and Iowa, the economic activity increased slightly with a slight gain in employment and business spending.
Manufacturing activity and consumer spending were flat, and nonbusiness contacts saw little change in activity. Construction and real estate activity edged down, but prices were up modestly and wages rose moderately. Financial conditions were little changed, though.
San Francisco district
San Francisco, the Fed’s 12th District, encompasses the states of California, Oregon, Washington, Idaho, Nevada, Utah, Arizona, Alaska, and Hawaii.
Economic activity remained stable, while employment levels and prices rose slightly.
Wages grew modestly, and retail sales were stable, while activity in consumer services and manufacturing ticked down a bit.
Conditions in the agriculture, residential, and commercial real estate markets continued to soften slightly. Activity in the financial services sector remained muted.

David Schollaert
Read more from David SchollaertLatest in Economy

Architecture billings still sluggish despite project inquiry uptick
The Architecture Billings Index (ABI), a leading indicator for non-residential construction activity, declined for an eighth straight month in June.

Beige Book: Tariff pressures mount, flat outlook
All districts reported “experiencing modest to pronounced input cost pressures related to tariffs, especially for raw materials used in manufacturing and construction.”

Steel exports recovered in May but still historically low
US steel exports rose 10% from April to May but remained low compared to recent years. This came just one month after exports fell to the lowest level recorded in nearly five years.

AISI: Raw steel production ticks up near recent high
The volume of raw steel produced by US mills inched higher last week, according to the American Iron and Steel Institute (AISI). After steadily increasing in April and May, domestic mill output stabilized in early June and has remained historically strong since.

Steel groups welcome passage of budget bill
Steel trade groups praised the passage of the Big Beautiful Bill (BBB) in Congress on Thursday.