Beige Book: Southeast Economy Slowed in Recent Weeks

Source: Publicnow

Economic activity in the Southeast declined slightly over the past several weeks, according to the new Beige Book report from the Federal Reserve Bank of Atlanta.

Contacts from several sectors reported that business had slowed during mid-July through August: consumer spending softened, leisure travel was down, and demand for both transportation and manufacturing activity fell. Five previous Atlanta Fed Beige Books this year described an economy that either grew modestly or exhibited little change. This report is the first in 2025 to characterize overall activity as slowing a bit.

At the same time, prices rose moderately. Some contacts said they have recently raised prices as they depleted inventories they had accumulated before the onset of tariffs. Smaller businesses had a harder time passing through cost increases to final prices, contacts reported, compelling many proprietors to cut expenses, including changing their product offerings and reducing workers' hours. Many contacts expect tariffs to create inflationary impacts through the rest of this year and into 2026, including companies that face little or no direct pressure from tariffs.

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