Fed Beige Book: Moderate economic growth, data centers and AI investment become key support

PANews reported on September 3, according to Jinshi, the Federal Reserve's Beige Book showed that U.S. economic activity has grown moderately since early July. Among the 12 Federal Reserve districts, 10 recorded slight to moderate growth, and 2 saw no change. Consumer spending increased slightly, but consumers became more price-sensitive, while high-end consumption remained strong. Auto sales were sluggish due to weak confidence, high oil prices, and rising financing costs. Manufacturing activity picked up in most districts, with some areas reporting strong demand for defense- and data center-related orders. Job market growth slowed, with overall employment only edging up. Labor demand was relatively strong in sectors such as manufacturing and construction, but declined in retail and hospitality. On prices, most districts reported moderate price increases, with cost pressures from energy, transportation, raw materials, and tariffs still present. Businesses generally expected a positive economic outlook going forward, but remained attentive to uncertainty from energy prices, policy, and international conflicts. The report's number of mentions of artificial intelligence and data centers also reflected the prominent role of these two types of investment in current economic activity. The full text mentioned artificial intelligence 19 times and data centers 25 times.