Market Data
July 17, 2026
Beige Book highlights employment uptick, flags pricing uncertainty
Written by Kristen DiLandro
Despite persistent pricing uncertainty, the Fed’s latest Beige Book reported that the US economy continued to expand at a modest pace with labor market conditions improving.
Employment improved across five districts compared to just one in its last report. The manufacturing, construction, and energy sectors showed the most hiring growth. However, employers in these industries reported being conservative and cautious due to overall uncertainty. Wage growth remained moderate.
Pricing dynamics were a persistent theme in the report. Businesses flagged increasing energy, transportation, construction materials, and industrial commodities prices as considerations in the months ahead. Inflation moderated during the reporting period, but contacts said volatility in the fuel market, the conflict in the Middle East, and tariffs could reignite inflation.
Consumer spending remained stable. However, the report found households were price-sensitive, and that spending was uneven. Many consumers lowered their discretionary spending and traded down on their purchases. Manufacturing grew, but the level of growth hinged on region and sector. Commercial lending and business investment improved but residential real estate remained subdued in most of the market.
Overall, the Beige Book characterized business sentiment as being cautiously optimistic. Concerns regarding inflation, input price increases, and global market forces tempered the enthusiasm of hiring and investment improvements. The report characterized the economy as resilient.
