Economic activity edges higher amid mixed consumer signals

Economic activity increased modestly since early July, with 10 of 12 Federal Reserve districts reporting growth in the slight to moderate range and two reporting no change, according to latest Beige Book data. Financial conditions improved slightly as loan volumes remained solid or increased across most districts. Residential construction declined, while nonresidential construction increased on balance — with some districts noting a high concentration of activity tied to data center projects. Consumer spending grew slightly on balance — reflecting heightened price sensitivity among some households alongside solid high-end purchases. Auto sales remained mostly subdued, dampened by downbeat consumer confidence, high fuel prices and rising financing costs. Tourism activity increased and airlines reported strong demand despite higher airfares. Manufacturing activity picked up across most districts, with some highlighting ongoing strength in demand for defense and data center-related orders. Services firms reported slight to modest increases in activity. Agricultural conditions saw slight improvement but generally remained strained; the livestock sector was strong while crop producers f...