Beige Book Shows Moderate Growth, Rising Costs

The Federal Reserve's August Beige Book released on Wednesday showed that economic output ticked up across ten of the twelve districts, while two regions remained flat. The report highlighted strong spending on high-end luxury goods, tech infrastructure, and defense, but also noted growing financial strain among lower-income households and soft vehicle sales.

The data center builds are driving regional expansion, with districts such as Cleveland, Atlanta, and Chicago noting that this is a primary engine of growth. However, business contacts nationwide expressed heightened anxiety about persistent increases in input costs, rising fuel costs linked to Middle East instability, and potential tariff impacts.