Fed’s Beige Book: Manufacturers in all districts expressed concern about tariffs

Below are the key highlights from the Federal Reserve’s closely watched Beige Book, via Reuters.

• U.S. Economy continued to expand in recent weeks.
• 10 of 12 districts reported ‘moderate or modest growth;’ Dallas district reported ‘strong growth’ helped by energy; st. Louis district called growth ‘slight’.
• Manufacturers in all districts expressed concern about tariffs; many reported higher prices and supply disruptions they attributed to new trade policies.
• Prices increased in all districts at ‘modest to moderate’ pace; pricing pressures are expected to ‘intensify further’ in some districts.
• Prices of key inputs rose further, including fuel, construction materials, freight and metals; tariffs contributed to increases for metals, lumber.
• A few districts described input price pressures as ‘elevated or strong’.
• Pass-through from input to consumer prices remained ‘slight to moderate’.
• All districts reported labor markets were tight; many said inability to find workers constrained growth.
• On balance wage increases were ‘modest to moderate’.
• Consumer spending was up in all districts with particular strength in Dallas, Richmond.
• Several districts reported slow growth in existing home sales but were not ‘overly concerned’ about rising interest rates.