Economic activity in the United States has shown a slight increase, according to the latest Beige Book report, despite ongoing concerns about the impact of tariffs on prices and demand. This report, published by the Federal Reserve Bank, offers insights from various Districts across the nation and is compiled from interviews with key business contacts, market experts, and economists.

The report suggests that while prices have risen modestly, there has been a noted increase in specific input costs. Employment trends showed a slight upward movement, with IT services reporting strong growth in revenue, leading the hiring activity. Nevertheless, many companies are exercising caution and planning to limit future hiring due to the uncertainty in policies.

Retail and tourism sectors experienced mixed results, with a slight increase in revenues. While auto sales noted moderate growth, overall retail sales, excluding automobiles, experienced a decline in the first quarter compared to the last quarter of the previous year. Tourism, particularly from Canada, showed a noticeable slowdown, which could impact summer travel due to the prevailing tariff policies.

In the manufacturing sector, sales remained flat, with disparities noted across different lines of business. Moreover, firms are concerned about potential price hikes due to tariffs, clouding the economic forecast with uncertainty.

The IT and software services sector reported robust growth, driven partly by acquisition activities. However, the impact of tariffs on client demand and federal research funding cuts are sources of concern within the sector.

Commercial real estate activity exhibited a slight increase, although uncertainty regarding tariffs has affected decision-making. The report notes stable vacancy rates and rents, but highlights the slowdown in demand for life sciences buildings due to expected funding cuts.

Residential real estate saw a slight decline in home sales across the First District for February and March, contrasting with robust sales in January, attributed to poor weather. Despite this, pending sales have risen in some areas, with hopes for a seasonal upswing in spring sales.

Overall, the outlook remains uncertain, with emerging risks related to tariffs and other federal policies potentially impacting inflation and demand.

For further details on regional economic conditions, individuals can visit the Boston Fed's website, while historical Beige Book content is available at the Board of Governors and Minneapolis Fed sites.

For media inquiries, to connect with Boston Fed economists or receive updates, the public is encouraged to reach out to their media relations team.