The latest edition of the Federal Reserve's Beige Book singled out tourism as a bright spot in what otherwise was a decidedly downbeat assessment of the U.S. economy.
"Conditions have weakened" since its last report two months ago, the Fed said in the new Beige Book, which was issued this week.
"Consumer spending was characterized as softening across most of the country, with some districts reporting year-over-year declines in retail and/or auto sales," said the Fed. "In contrast, tourism was generally described as strong, with a number of districts noting particular strength in foreign visitors."
The Fed, which refers to U.S. regions by the locations of district offices, reported that "the Boston, New York, Atlanta, Minneapolis, and Kansas City districts reported strong tourism activity, while the Richmond and Chicago districts described that sector as mixed, with pockets of strength. San Francisco indicated mixed but generally weak tourism activity."
Although U.S. destinations, including New York and Orlando, have been seen as benefitting from strong foreign visitation partly attributable to the weak American dollar, the Beige Book advised that the influx of international tourists is being felt more broadly.
"Reports from Boston, Atlanta, Chicago, and Minneapolis specifically cited foreign visitors as a source of strength," the Fed said.
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