Fed Beige Book Shows Little Growth as Higher Oil Prices Push Up Costs

Economic activity showed little growth across most of the country in recent weeks while higher oil prices pushed up costs, the Federal Reserve said Wednesday, Oct. 14, in its Beige Book. Three of the 12 Federal Reserve districts described price growth as robust, up from one in the previous report in August.

The report, released at 2 p.m. ET, was prepared at the Federal Reserve Bank of Philadelphia from information collected on or before Oct. 5. It summarizes comments from business and community contacts and "is not a commentary on the views of Federal Reserve officials," the Fed said.

How is the U.S. economy doing, according to the Beige Book?

Growth was uneven and mostly small. Two districts reported moderate growth, three modest growth, four slight growth and three no significant change, the Fed said. "Reports on other sectors indicate little growth overall," the summary said, outside of manufacturing.

Activity since the prior report	Districts
Moderate growth	Richmond, Dallas
Modest growth	Cleveland, Atlanta, St. Louis
Slight growth	Boston, New York, Philadelphia, Minneapolis
No significant change	Chicago, Kansas City, San Francisco

Source: Federal Reserve Beige Book, October 2026, district highlights.

Manufacturing led. "Robust, broad-based growth in manufacturing led the moderate growth reported in the Dallas District," the Fed said, and six other districts reported modest to moderate manufacturing growth. Most districts reported little or no change in consumer spending, and over half said spending was driven by high-income households. Auto contacts reported flat to modestly lower sales in five of the six districts that reported on them.

What does the Beige Book say about inflation?

Price pressures rose. Three districts called overall price growth robust, eight called it moderate and one modest, and four said the pace of increases picked up since the prior period. In the August report, one district reported robust price increases and eight moderate.

"Higher oil prices permeated all District reports," the Fed said. Firms cited elevated diesel prices and said fuel surcharges were passing higher costs through the supply chain. Contacts also reported pressure from other commodities, tariffs and insurance, and firms in several districts expect prices to rise further in the coming months.

The Cleveland Fed said nonlabor cost pressures were robust "for the eleventh consecutive reporting period," and one builder there called high fuel costs plus tariffs a "double whammy." The Dallas Fed said, "The higher price for diesel reigned supreme" among factors driving up costs. The St. Louis Fed said prices rose "at a robust pace," with sharp increases in health care costs.

What does it say about jobs and wages?

Labor market conditions were little changed. Three districts reported modest employment gains, five slight gains and four no significant change. Shortages persisted for specialized, technical and skilled trade workers.

Five districts said some firms reduced staff through attrition, delayed hiring or expected less job creation after investing in AI. Wage growth was moderate in five districts, modest in four and slight in two. Several districts said inflation had led to higher cost-of-living demands from workers.

Why it matters for the Fed

The Beige Book arrived hours after the Bureau of Labor Statistics said consumer prices rose 0.6% in September and 3.7% from a year earlier. Fed policymakers meet next on Oct. 27–28, according to the Fed's meeting calendar.

Read more in our coverage of the September CPI report, the September U.S. jobs report and Brent and WTI oil prices, and in our economy news section.