Economic activity has remained mostly flat, according to the latest Beige Book report. Despite varying signals across sectors, uncertainty continues to play a role in holding back growth. Retailers have seen modest declines in sales, while tourism revenues have slightly decreased. In contrast, home sales experienced a modest increase following a period of decline.

Manufacturing sales were mixed but overall stable, with software and IT services firms seeing moderate revenue growth. Commercial real estate activity showed little change, with prices increasing modestly on average. Employment saw a slight rise, accompanied by modest wage growth.

"Employment expanded slightly, and wages increased modestly," the report notes. Hiring was cautious due to policy uncertainty and concentrated in select manufacturing and IT services firms.

Prices have increased modestly overall, with tariffs causing moderate-to-large price increases in some instances. "Most contacts expected to hold their own prices steady for the rest of the year," states the report.

Retail and tourism sectors reported revenue declines due to reduced visits from Canada and unfavorable weather conditions. "Contacts expected visits from Canada to remain well below normal levels," the report adds.

In manufacturing, sales were flat on average despite some bright spots in consumer product retail sales. The outlook remains positive despite challenges related to policy uncertainty.

Software and IT services experienced moderate revenue gains driven largely by one firm's large transaction. Demand for data services that facilitate AI usage has increased.

Commercial real estate activity was described as flat overall, with office leasing showing slight increases but remaining sluggish. "Office rents were said to have stabilized at very low levels," according to the report.

Residential real estate saw a modest increase in home sales across the First District from May 2024 through May 2025, with stronger results for single-family homes compared to condominiums.

For further information on District economic conditions or access to Beige Book content dating back to 1996, visit the Boston Fed's website or contact their media relations team for more resources.