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Construction and real estate activity rise modestly in Fed Beige Book

The Fed Beige Book said 11 of 12 districts saw slight to moderate growth, while higher fuel prices reduced discretionary spending and pushed consumers toward cheaper goods.

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The Federal Reserve Beige Book, covering late May and June, found slight to moderate economic growth in 11 of 12 districts, with construction and real estate activity increasing modestly overall, according to HousingWire.

Several districts pointed to data center building as a driver of growth within construction and real estate. Financial conditions were described as largely stable, with commercial and consumer loan volumes up modestly, while consumer loan quality ticked down and commercial loan quality held steady.

The report also described consumer spending edging higher, but higher fuel prices weighed on discretionary sales. It added that households sought cheaper goods, and some districts flagged elevated uncertainty around future fuel costs.

Labor markets were mixed, with employment gains widening as skilled labor remained scarce. Respondents generally expected continued economic expansion, while some districts reported small employment declines and wage growth ranging from modest to moderate.

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