US economic activity shows slight improvement: Federal Reserve

The Federal Reserve reported a modest improvement in US economic activity between late May and early July, amid persistent uncertainty and cautious sentiment among businesses.

In its Beige Book report released today, July 17, the Fed said all 12 Federal Reserve districts reported price increases. Businesses faced input cost pressures ranging from moderate to high, largely driven by tariffs.

The report noted that many companies passed on at least part of the increased costs by raising prices or introducing additional fees.

However, some chose not to raise prices due to rising customer sensitivity, resulting in narrower profit margins.