The US economy has continued to expand at a modest pace, with employment rising slightly and prices increasing moderately across most districts, according to a report by the Federal Reserve Board.
Ten of the 12 Federal Reserve districts reported slight to moderate economic growth since early July, while two reported no change, suggesting an economy still expanding but losing momentum.
Employment edged up overall, though labour markets remained largely flat in many regions. Wage growth stayed modest to moderate, with stronger increases concentrated in construction and manufacturing, where demand for skilled workers remains high.
American consumers kept spending, but growing price sensitivity contrasted sharply with continued demand for high-end goods.
Auto sales remained sluggish as weak consumer confidence, high fuel prices and rising financing costs kept buyers away.
Tourism, however, gained momentum, with airlines reporting strong demand despite higher fares.
Data centre drive
Manufacturing gained momentum across much of the country, driven by strong orders tied to defence and the rapid expansion of data centres.
Residential construction continued to decline, while nonresidential projects surged on the back of new data centre development.
US companies also reported mounting health care and insurance expenses, while expressing cautious optimism about the months ahead amid growing uncertainty over conflicts, policy changes and energy prices.
The report gives policymakers a real-time, on-the-ground view of US growth that will help shape the next interest-rate decision amid mixed labour, consumer, and geopolitical signals.
