U.S. economic activity expanded at a moderate pace since early July, with 10 of the Federal Reserve’s 12 districts reporting slight to moderate growth and two showing no change, according to the latest Beige Book. Consumer spending rose slightly as households grew more price-sensitive, while high-end demand remained firm. Auto sales stayed weak amid soft confidence, high oil prices, and rising financing costs. Manufacturing improved in most districts, with some regions citing strong demand tied to defense and data center orders. Labor market growth slowed, with overall employment edging up and hiring strength concentrated in manufacturing and construction, while retail and hospitality weakened. Most districts reported moderate price increases as businesses continued to face pressure from energy, transportation, raw materials, and tariffs. The report also highlighted the growing role of artificial intelligence and data center investment in current economic activity. The Beige Book mentioned artificial intelligence 19 times and data centers 25 times, underscoring their importance as support for growth.