The following are the main points from the Beige Book report issued by the Federal Reserve today, April 23, 2025: Several regions have witnessed a noticeable increase in uncertainty regarding international trade policy, leading to a deterioration in economic outlooks in some areas. Concerns about tariffs and their impact on economic growth have intensified, significantly affecting future plans for many companies.
Despite stable economic activity in some regions, a decrease in employment was noted compared to previous reports. Under these circumstances, many companies adopted a "wait and see" approach regarding employment, while others began preparing for layoffs due to the growing uncertainty in the economy.
Prices continued to rise across all regions, with many companies rushing to purchase raw materials and equipment before anticipated increases due to tariffs. On the other hand, consumer spending on non-automotive goods generally declined, although auto sales experienced notable strength as buyers rushed in ahead of the potential rise in tariffs.
Travel, both for leisure and business purposes, declined, with several regions reporting a drop in the number of international visitors, especially from Canada. At the same time, several companies in various sectors reported that they had halted major economic decisions due to ongoing uncertainty. In the New York area, for instance, companies in the services sector reported a significant drop in planned investments.
Despite the stability of some economic activities in certain regions, forecasts indicate that uncertainty and the wait-and-see attitude will continue in the near future due to concerns about trade policies, which may negatively impact economic growth in many sectors.
