Summer 2026 Beige Book update

As I noted above, I will try (more consistently) to post links each time to the newest Beige Book release by the Federal Reserve districts here in the western portion of the country. I'm not planning to do every update - they release a new Beige Book 8 times per year - but would like to do quarterly if possible. They may not reflect major changes from one cycle to the next, but they are a great way to update students about economic conditions AND expose them to the mix of businesses found in a single state or region.

Based on what I've heard back from people so far, I'm going to focus on three Federal Reserve districts spanning the middle of the country:

9th District (based in Minneapolis) - covers Montana, North & South Dakota, Minnesota, and northern Wisconsin/Michigan

10th District (based in Kansas City) - covers Colorado, Wyoming, northern New Mexico, Nebraska, Kansas, and Oklahoma

11th District (based in Dallas) - covers Texas, southern New Mexico, and northern Louisiana

If I get more interest beyond that I'm happy to expand - in particular, I tried to decide if there was a need in Utah and Nevada, or if the councils in Arizona and California are covering them. For now, the three districts above are a big enough reach in the western U.S. For each I'm going to provide their overall summary and one economic sector that seems to "tell the story" for the past couple of months. Then at the end I will also provide the nationwide summary (and in this case links to a couple of podcast episodes following up on the Beige Book results).

The Beige Book links:

9th District - https://www.minneapolisfed.org/beige-book-reports/2026/2026-06-mi

Their overall summary: "Ninth District economic activity increased modestly since the previous report. Employment grew slightly, and wage growth was modest to moderate. Prices increased sharply, particularly for inputs. Growth was noted in financial and nonfinancial services, construction, and manufacturing. Consumer spending, tourism, and energy were flat. Agricultural conditions remained weak. Activity among minority- and women-owned business enterprises was mixed."

9th District worker experience: "Overall, workers across the District faced a shrinking number of job postings. Individuals with skills in construction, manufacturing, or health care were more likely to be hired. A community college contact noted that older adults were "coming back to get a second credential to better compete for jobs." A contact in Minnesota said that workers faced limited ability to negotiate for higher pay and were mostly absorbing higher commuting costs. Several contacts noted that workers had an increasing fear of spending. Younger workers with families were reportedly swapping planned vacations for "staycations" in the face of higher fuel prices."

10th District - https://www.kansascityfed.org/surveys/beige-book/tenth-district-beige-book/

Their overall summary: "Economic activity increased slightly in the Tenth District; however, consumer-facing firms continued to report softer demand and margin compression. Contacts noted that limited labor availability, elevated labor costs, and faster AI adoption among offshore providers increasingly motivated firms to shift back-office professional functions to lower-cost global service markets to improve productivity and offset margin compression. Firms reported higher energy-related expenses, though liability insurance, packaging materials, and other inputs exerted the greatest upward price pressure. Consumer-facing contacts described growing behavioral adjustments among middle-income households, including reduced frequency and lower per-visit spending at sit-down restaurants. One contact noted that “middle-income households are squeezing more life out of every dollar before deciding to spend it.”

10th District agriculture: "Conditions in the Tenth District farm economy remained split across crop and livestock sectors. Corn, soybean, and wheat prices have increased moderately since April, but the spike in fuel and fertilizer costs was expected to keep profit opportunities narrow. Contacts noted that wheat conditions in Kansas, Nebraska, and Oklahoma were particularly poor due to severe drought, raising concerns about reduced revenue for producers. Strong cattle prices continued to support cow/calf producers and boosted incomes for dairy and crop operations with diversification into beef cattle. According to the latest lender survey, ranchland values increased sharply alongside strength in the cattle sector, and cropland values increased modestly despite ongoing challenges for crop farms."

11th District - https://www.dallasfed.org/research/beige/2026/bb260603

Their summary: "Economic activity in the Eleventh District rose modestly over the reporting period. Growth resumed in the service sector and picked up pace in manufacturing and banking. Retail sales weakened, and energy activity ticked up. The real estate sector was mixed, with falling home sales but rising commercial activity. Employment was largely flat, and wage growth remained modest. Increased fuel prices spurred price pressures. Outlooks were tepid amid heightened uncertainty stemming from the conflict in the Middle East and sharply higher transportation costs."

11th District labor markets: "Employment overall was mostly flat during the reporting period. Increased economic uncertainty resulting from the Middle East conflict prompted some firms to pull back on hiring. A staffing agency noted difficulty finding experienced candidates to meet rising demand for professional services positions, observing that people are reluctant to change jobs in this environment. An engineering firm said 80 percent of their new hires do not have a background in a related industry, a change from five years ago when it was more common than not to find someone from a connected industry. Labor shortages were noted for oilfield technicians. Wage growth remained modest in the service sector but moderate in manufacturing. A services contact noted some relief in terms of pay demands from job candidates. Labor costs for homebuilders remained flat or declined due to reduced work volume in the single-family housing market."

Overall National Summary - https://www.federalreserve.gov/monetarypolicy/publications/beige-book-default.htm

National summary (prepared this time by the Kansas City Fed): "Economic activity increased at a slight to moderate pace for ten of the twelve Federal Reserve Districts, while one District reported a slight decline and one reported no change. Consumer spending remained mixed across Districts and increasingly bifurcated across income groups amid affordability pressures. Higher-income households remained resilient and less sensitive to price increase, while middle-income households were described as “squeezing more life out of every dollar before deciding to spend it,” and low-income consumers showed greater financial strain. Overall, there were reports of increased credit card usage, fewer retail visits, and stronger demand for necessities. Auto dealers reported softer new vehicle demand tied to affordability and fuel costs, alongside substitution toward used and hybrid vehicles. By contrast, manufacturing activity increased at a modest to strong pace for nine of the Districts and only one noted a slight decline from the previous period. Banking conditions were stable across most Districts; however, residential mortgages, consumer, and agricultural loan delinquencies were noted as rising in several of the Districts. Agriculture conditions were unchanged or declined for most of the Districts, with cost pressures intensifying from fuel and fertilizer spikes. Energy activity increased in two of the markets, but Districts reported that the outlook remains highly uncertain leading producers to hold off on materially expanding activity. More broadly, business outlooks for the next six months were reported to have little change in anticipated growth, as elevated uncertainty and signs of weakening consumer spending weighed on sentiment."

Audiovisual Resources to Supplement the Written Reports -

"Community Colleges are Kind of Underrated", The Indicator from Planet Money (from NPR), Jun 2026, https://www.npr.org/transcripts/nx-s1-5856534

"Fed’s May Beige Book: Fed underscores ‘K-shaped’ economy", CNBC.com, Jun 2026, https://www.cnbc.com/video/2026/06/03/feds-may-beige-book-fed-underscores-k-shaped-economy.html

"June 2026 Beige Book Interview", Timely Topics Podcast (from the Federal Reserve Bank of St. Louis), Jun 2026, https://www.stlouisfed.org/timely-topics/june-2026-beige-book-interview

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