The Federal Reserve’s August 2026 Beige Book was released on September 2. The report summarized that U.S. economic activity increased from slight to modestly since early July. Released around the same time, the August ISM Manufacturing PMI was 54.6, indicating continued manufacturing expansion, although it was lower than the previous month.

Key Changes

The Beige Book reported growth in 10 of the 12 Federal Reserve Districts, while two reported no change in economic activity. Employment increased only very slightly overall, and some districts reported no change in employment.

Public-domain image of the entrance to the Marriner S. Eccles Federal Reserve Board Building, the U.S. Federal Reserve headquarters in Washington, D.C.
Entrance to the Marriner S. Eccles Federal Reserve Board Building, U.S. Federal Reserve headquarters, Washington, D.C. · Wikimedia Commons · CC BY-SA 3.0 · TheAgency (CJStumpf), 17:46, 10 February 2007 (UTC)
The U.S. economy maintained its growth, but improvements in employment remained limited.

Current Status

The August ISM Manufacturing PMI was 54.6, down 1.0 point from July’s 55.6. Even so, it remained in expansion territory for the eighth consecutive month.

Official Federal Reserve video · The Beige Book: Summary of Commentary on Current Economic Conditions by Federal Reserve DistrictWatch on YouTube
IndicatorAugust 2026Change from Previous Month
Manufacturing PMI54.6Down 1.0 point
New Orders Index53.7Down 3.0 points
Employment Index51.2Down 1.6 points
Prices Index71.1Unchanged from Previous Month

The Beige Book said prices rose moderately in several districts. Businesses also reported uncertainty related to the effects of energy prices, policy, and international conflicts. The ISM Manufacturing Prices Index was 71.1, unchanged from the previous month, while raw-material price increases continued for the 23rd consecutive month.

Implications

The data show that U.S. economic activity and manufacturing have maintained their expansion, while the pace of growth in manufacturing new orders and employment has slowed. At the same time, the Prices Index remained elevated, making it necessary to monitor growth and inflation trends together.

However, the Beige Book is a qualitative, district-by-district survey, while the ISM Manufacturing PMI is a manufacturing survey indicator. Therefore, these two reports alone cannot establish the direction of the entire U.S. economy or determine the September FOMC’s interest-rate decision.

Next Checkpoint

According to the Federal Reserve’s official schedule, the September 2026 FOMC meeting will take place on September 15–16. Until then, it will be important to see whether the growth, employment, and price signals shown in the Beige Book and manufacturing data continue in subsequent releases.

Source Verification

  • Board of Governors of the Federal Reserve System, “Beige Book - August 2026: National Summary” — https://www.federalreserve.gov/monetarypolicy/beigebook202608-summary.htm (checked September 2, 2026)
  • Institute for Supply Management, “August 2026 ISM Manufacturing PMI Report” — https://www.ismworld.org/supply-management-news-and-reports/reports/ism-pmi-reports/pmi/august/ (checked September 2, 2026)
  • Board of Governors of the Federal Reserve System, “2026 FOMC Meetings” — https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm (checked September 2, 2026)
  • Reuters report — https://www.investing.com/news/economy-news/economic-activity-edged-up-and-prices-rose-moderately-in-recent-weeks-fed-survey-shows-4886620 (checked September 2, 2026)
  • Trading Economics — https://ko.tradingeconomics.com/united-states/business-confidence/news/580097 (checked September 2, 2026)