U.S. Economy Shows Modest Expansion Across 11 of 12 Fed Districts Through June, Consumer Spending Under Pressure

According to the Federal Reserve Beige Book released on July 16, the U.S. economy showed modest expansion across 11 of 12 Federal Reserve districts from late May through June, with overall growth pace largely unchanged from the previous period.

High oil prices and other factors dampened consumer spending, with consumers reducing purchases of non-essential goods and shifting toward lower-cost alternatives. Manufacturing maintained moderate growth, with increased orders in data centers, machinery, and defense sectors. Construction and real estate activity improved modestly, with data center development as a highlight. However, agriculture faced headwinds from declining commodity prices, rising costs, and tightening credit conditions. Most respondents expect the economy to continue expanding in coming months, though fuel cost outlook remains uncertain.