The Beige Book, published eight times a year by the Federal Reserve Bank, offers insights into economic conditions across various districts. According to the latest report, overall economic activity has seen a slight increase. Prices and employment levels have remained stable, with wages experiencing modest growth.

Air travel emerged as a positive sector, with domestic passenger traffic in Boston surpassing 2019 figures and Worcester airport seeing substantial growth over the past year. However, tourism showed only modest increases, and some restaurants reported weaker-than-expected sales. Retail revenues saw slight growth as consumers continued to be price-conscious. Manufacturing sales were mixed while software and IT services firms maintained steady demand. Residential real estate sales rose modestly due to improved inventories in certain areas, though commercial real estate activity remained flat.

In labor markets, employment was stable with average wage increases being modest. The retail, tourism, and software sectors reported steady headcounts. Some manufacturing firms adjusted headcounts slightly based on sales performance. Labor supply for retail and tourism jobs improved slightly, easing hiring processes and reducing attrition rates.

Prices remained largely unchanged across sectors. An online retailer noted minimal pricing pressures but highlighted consumer sensitivity to prices. Hotel room rates in Greater Boston decreased compared to record highs in November 2023. Manufacturers kept output prices steady despite rising input costs.

Retail contacts observed slight revenue increases recently while tourism grew modestly on average. Cape Cod's hotel occupancy rates met expectations but restaurant sales fell short of projections.

Manufacturing sales were generally flat since the last report with variations among firms based on product demand and inventory strategies related to tariffs.

IT and software services experienced stable demand at healthy levels with expectations for strong revenue growth in early 2025 driven by organic demand growth and recent acquisitions.

Commercial real estate activity was mostly flat due to elevated long-term interest rates limiting transactions despite hopes for rate declines in 2025 remaining low among some contacts.

Residential real estate saw a moderate rise in home sales year-over-year supported by increased inventories particularly in Maine and Vermont though Massachusetts saw a decline from last year’s figures.

Overall outlook remains cautiously optimistic despite concerns over potential changes in national economic policies affecting future conditions.

For further details about district economic conditions visit www.bostonfed.org/regional-economy or access historical Beige Book content through the Board of Governors website or Minneapolis Fed archives by district dating back decades.

Contact media relations at Boston Fed for more information or connect with economists directly through their provided resources available online including email updates from BostonFed.