The Federal Reserve released its latest Beige Book on July 15, 2026, covering conditions from late May through early July 2026. The report found that 11 of the Fed’s 12 districts reported increased economic activity, with one district holding steady.

Consumer spending edged up modestly, even as higher fuel prices weighed on certain sectors. Manufacturing saw modest to moderate growth, with the standout performers being data centers, machinery, and defense-related production. Construction and real estate posted slight gains, with the data center buildout serving as a specific growth driver reflecting continued infrastructure investment.

Employment trends were positive, though uneven. Five districts reported employment growth ranging from modest to solid, while the remaining seven saw little to no change. Wage growth across the board landed in the modest to moderate range.

Price growth held at a moderate pace, similar to or slightly slower than the prior reporting period. The factors behind input cost pressure included energy prices, transportation costs, raw materials, tariffs, and geopolitical tensions stemming from ongoing conflict in the Middle East. World Cup tourism also surfaced as a demand-side factor nudging prices in certain markets during the reporting window.

The Beige Book is a qualitative survey, not a hard data release. Contacts surveyed in the report generally expect continued expansion, but flagged fuel costs as the primary risk to that outlook. Tariffs are also contributing to input price pressures in several districts.