Fed "U.S. consumer spending flat…data center construction surges"

Korea Economic Daily

Summary

The Fed said U.S. consumer spending is flat or declining.
It viewed economic uncertainty and tariffs, and that wage increases are not keeping pace with price increases, negatively.
On the other hand, data center construction has surged, showing strength in commercial real estate in some areas.

The U.S. Federal Reserve (Fed) said in the Beige Book released on the 3rd (local time) that consumer spending across the United States was found to be flat or declining. The Fed diagnosed, "Survey respondents often cited economic uncertainty and tariffs as negative factors," and "it was reported that wage increases for many households are not keeping up with price increases."

However, construction of data centers related to the artificial intelligence (AI) sector has surged in various areas, and as a result commercial real estate was found to be strong in areas around Philadelphia, Cleveland, and Chicago. The Beige Book is an economic report in which 12 regional Federal Reserve banks in the U.S. contact local banks, businesses, and experts to collect recent economic trends. It is used as basic material for deciding the policy rate at the Federal Open Market Committee (FOMC) meeting to be held on the 16th~17th.

Park Ju-yeon reporter grumpy_cat@hankyung.com

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