US Economic Activity Shows Modest Growth, Auto Sales Remain Subdued

The Federal Reserve's Beige Book for August 2026 reports that economic activity increased modestly since early July. Ten of the twelve Federal Reserve Districts reported growth in the slight to moderate range, while two districts reported no change.

Consumer spending grew slightly on balance, but was marked by heightened price sensitivity and solid high-end purchases. Auto sales were subdued due to downbeat consumer confidence, high fuel prices, and rising financing costs.

Tourism activity increased, with airlines reporting strong demand despite higher airfares. Manufacturing activity picked up across most districts, with some noting a moderate pace of growth.