October 14, 2026— The Federal Reserve’s October 2026 Beige Book reports slight to moderate growth in economic activity in all but three districts due primarily to a surge in the manufacturing sector.
Reporting on data from the Federal Reserve’s 12 regional banks collected through September 2026, the Beige Book reflects a largely positive economic outlook for the coming months despite very little change in retail sales and flat auto sales. The socioeconomic divide is still evident: high-income households continue to spend, while lower-income consumers grow cautious and price-sensitive.
Labor markets overall have not changed a great deal. Labor supply remains adequate to meet demand, although there are still shortages for some technical specialties and skilled trades. Inflation and the rising cost of benefits are putting pressure on employers as their employees push for higher wages.
Higher oil prices and fuel charges are reported throughout the districts, leading to increased costs across the supply chain. Price-sensitive shoppers are resisting price hikes, so profit margins for many businesses are tightening. Some businesses are seeking other ways to reduce their own costs, including menu changes and targeted incentives.
Tourism remains strong throughout New England, although there has been a reported decrease in Canadian tourists. Hotels report strong occupancy rates as well.
The October 2026 Beige Book is now available on the Federal Reserve website.
Editor’s note: This information is provided for educational purposes only.