Fed report: Energy prices causing a 'softening' in tourism

The latest edition of the Federal Reserve's Beige Book reported that rising energy prices have led to a softening in tourism in several of its regions.

"Consumer spending slowed since the last report as incomes were pinched by rising energy and food prices," the Fed said. "Higher energy prices also appeared to damp domestic tourism."

Just two months ago, the Fed had singled out tourism as one of the few bright spots in the economy.

The new Beige Book, which was released Wednesday, noted that while tourist activity varied across districts, key regions such as New York, San Francisco and Chicago reported weakened activity.

The Fed, which refers to U.S. regions by the locations of district offices, reported that the weakened activity in New York led to "lower attendance at Broadway theaters" while the San Francisco region reported "weaker hotel bookings in Southern California and in Hawaii, but record hotel occupancy rates in parts of Alaska."

Some regions reported increased activity, including the Richmond district, "as families took vacations closer to home," and the Atlanta and Dallas districts, where "international visitors helped boost tourism activity."

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