The US economy grew slightly at the end of the year, according to the Fed, which detects nervousness about tariffs

MADRID Jan 15 () –

US economic activity rose “slightly” between late November and early December, the US Federal Reserve (Fed) said in its Beige Book, a document that provides a detailed assessment of the economy by the 12 regional central banks of the United States. country.

The document shows that consumer spending grew moderately thanks to stronger-than-expected holiday sales. Vehicle sales improved “modestly.”

Later, construction activity retreated due to the high costs of financing and the materials used. Residential real estate activity remained unchanged as demand was restricted by high mortgage costs, while commercial real estate activity did rebound.

The industry saw its figures worsen “slightly”, while some districts reported that business owners were stockpiling inventories in anticipation of the tariffs promised by Donald Trump. The energy sector exhibited “uneven” behavior.

The non-financial services sector improved “slightly” thanks to tourism and transportation, especially aeronautical, but the truck sector did suffer.

For their part, financial service providers reported “modest” loan growth and little change in asset quality, although some concern remains about defaults among small businesses and lower-income households.

Agricultural conditions remained “weak”, with generally lower farm incomes and weather-related difficulties in some areas. The spread of bird flu reduced the supply of eggs and raised prices.

Regarding business confidence, the Fed has indicated that there were more contacts that were optimistic than cautious about the macroeconomic outlook for 2025, despite the fact that several districts expressed nervousness about possible changes in immigration and tariff policy.

In terms of employment, the labor market improved in general terms, with six districts creating employment and another six remaining stable. However, there were hardly any layoffs and there were difficulties in finding talent. In addition, “greater uncertainty” was noted about future staffing needs.

In turn, prices grew “modestly” with flat to moderate growth. Retail sales rose moderately in most regions, although there were cases of stagnation or declines. Input costs increased.

Finally, Fed contacts expect prices to continue rising in 2025, with some warning of the possibility that increased tariffs will contribute to inflation.