Wednesday afternoon, the Federal Reserve released its closely watched Beige Book report, saying that the reports from the various Federal Reserve districts indicate that economic activity remained generally weak in late April and May.
The Beige Book, a compilation of anecdotal evidence on economic conditions from each of the 12 Federal Reserve districts, said three districts described economic activity as softer, weaker, or lower, while an additional four districts reported slower, sluggish, or modest economic growth.
At the same time, the report indicated an increase in price pressures in line with recent comments from Fed officials highlighting concerns about the outlook for inflation.
With inflation increasingly being cited as a major concern, most analysts expect the Fed to end its recent string of interest rate cuts. The Fed is scheduled to make its next decision on interest rates after a two-day meeting ending June 25th.
Consumer spending slowed since the last report, according to the Fed, which noted that higher prices for food and energy contributed to softer sales in other categories. Higher energy prices also appeared to damp domestic tourism.
The report also said that manufacturing activity was generally soft in recent weeks. The Boston, New York, Richmond, Atlanta, and Chicago districts all reported that activity had weakened.
The Fed noted that reports of softer demand for housing-related products continued to be widespread.
Residential real estate markets also remained weak across most districts, according to the report, while commercial real estate and non-residential construction activity varied.
With regard to inflation, the Fed said that reports of higher input costs were widespread, with manufacturers noting some ability to pass higher costs on to customers. Retailers had mixed results with regard to passing on higher prices.
At the same, most districts reported that wage pressures were moderate or limited, as hiring activity remained spotty.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.