The Beige Book said activity rose ‘slight’ in the period since the mid-January report, which a downgrade from the prior report that said “activity increased slightly to moderately”.

Tariffs were only mentioned six times in the report, which is less than I would have expected.

“Contacts in most Districts expected potential tariffs on inputs would lead them to raise prices, with isolated reports of firms raising prices preemptively,” the report said.

• Six districts reported no change, four noted modest/moderate growth, and two reported slight contractions
• On consumer spending, lower on balance, with consumers showing increased price sensitivity on discretionary items
• On manufacturing: slight to modest increases across most districts, though uncertainty about tariffs weighs heavily
• Jobs: Employment nudged slightly higher, with improved labor availability in many sectors
• Wages grew at modest-to-moderate pace, slower than previous report, with several districts noting easing wage pressures
• Overall prices saw moderate increases in most districts, with several reporting an uptick in the pace of growth

This article was written by Adam Button at www.forexlive.com.