Xinhua
04 Jun 2026

NEW YORK, June 4 (Xinhua) -- U.S. consumer spending remained mixed and increasingly divided by income group amid affordability pressures, the Federal Reserve said Wednesday in its Beige Book.

The Beige Book, a survey of economic conditions based on information collected from the 12 regional Federal Reserve banks, is published eight times a year.

Higher-income households remained resilient and less sensitive to price increases, while middle-income households were described as "squeezing more life out of every dollar before deciding to spend," the report said. Low-income consumers showed greater financial strain.

Overall, the Beige Book noted increased credit card use, fewer retail visits, and stronger demand for necessities.

Auto dealers reported softer demand for new vehicles, citing affordability concerns and fuel costs, along with a shift toward used and hybrid vehicles.

However, overall U.S. economic activity increased at a slight-to-moderate pace in 10 of the 12 Federal Reserve districts.