CLEVELAND – The Cleveland Fed’s latest look at the Fourth District’s region suggests flat business activity in recent weeks and for the months ahead.

In its summary of economic activity released June 4, the Cleveland Fed reported that tariffs and broader economic uncertainty are affecting communities, low- to moderate-income families, manufacturing, commercial construction and other sectors.

The report, known as the Beige Book, noted that retailers are seeing a pullback in consumer spending. Manufacturers also reported that ongoing economic and trade policy uncertainty is dampening demand for goods.

Demand for professional and business services reportedly increased, driven by a higher need for consultation due to regulatory shifts.

While there was a slight increase in overall employment, staff reductions were mentioned more frequently. Professional and business service firms reported more hiring activity, while manufacturers and freight companies were more likely to report staff cuts. Improved labor availability made it easier to hire, particularly for entry-level positions.

Nonlabor costs continue to rise, a trend that began in 2024. Tariffs were cited as a contributing factor, increasing the cost of imported goods and items purchased through secondary markets.

More firms reported raising prices compared with the previous reporting period. Manufacturers and construction firms said they increased prices to offset tariffs and higher steel costs, while auto dealers cited strong demand as the reason for price hikes.

Manufacturing activity appeared to stabilize after declining in the previous period. Some firms reported higher orders from customers seeking domestic alternatives to typically imported products.

Real estate and construction firms reported moderate growth in home demand, while commercial construction saw a slight decline, signaling more cautious investment decisions.

Loan demand was flat, as uncertainty around trade policy caused some businesses and consumers to delay projects or purchases. However, some lenders reported an uptick in auto loans as buyers moved quickly to avoid potential price increases tied to tariffs.

The Fourth District of the Cleveland Fed includes all of Ohio and parts of Pennsylvania, Kentucky and West Virginia. A detailed look at the Survey of Regional Conditions and Expectation Indexes is available HERE.