US Economic Perspectives: Beige Book — slow and steady

Research evidence excerpt

US Economic Perspectives: Beige Book — slow and steady

sts rather than fully passing them along. "Producers

reported rising input costs, but many held selling prices steady and absorbed the

additional cost increases," the Richmond summary noted. We have noted that since the

beginning of the conflict, prices paid indexes in regional Federal Reserve manufacturing

surveys rose faster than prices received indexes.

Employment firms modestly, AI adoption more visible

Labor market conditions improved on balance relative to the prior Beige Book.

Employment increased in five districts and was little changed in seven. Hiring gains were

observed across manufacturing, construction, retail, health care, and transportation,

while only isolated reports of employment declines were noted across districts. Wage

growth remained modest to moderate across most districts, with competition for skilled

labor contributing to upward wage pressure in specialized occupations.

A recurring theme across several districts was continued difficulty finding skilled

workers, including electricians, technicians, machinists, engineers, welders, and other

tradespeople. Philadelphia contacts noted that shortages of electricians were delaying

data center projects, while Kansas City manufacturers continued to report competition

for skilled machine operators and welders. Richmond and Dallas contacts similarly cited

shortages of technical and specialized labor.

The Beige Book also contained a number of references to artificial intelligence. Several

districts' summaries noted that firms were increasingly deploying AI to improve

productivity, assist hiring processes, or evaluate workforce needs. Interestingly, the

Kansas City summary noted, "Jobseekers reported increased difficulty getting past AI