Beige Book: GLP-1s Affecting Demand for Poultry, Alcohol
October 14, 2026
The new Beige Book is largely a story of more of the same.
The Southeast economy grew modestly as employment levels remained steady, and costs grew moderately with a few goods and services prices rising quickly, according to the new Beige Book report from the Federal Reserve Bank of Atlanta. In particular, many contacts said costs were climbing for employee benefits and that they were passing much of the increases on to employees.
On the important consumer spending front, high-end retail continued to power a slight expansion in consumption even as rising food and gas prices squeezed low- and moderate-income households. (Consumption is critical to economic growth, as it accounts for about two-thirds of America’s gross domestic product.) Restaurants reported fewer customers, smaller average checks, and increased use of promotional prices. Meanwhile, new car sales were mostly unchanged.
In the tourism industry, one contact said business increased as families who couldn’t rent or buy a house turned to inexpensive extended-stay hotels as temporary residences.
In other sectors:
- More homes in the Southeast sold below asking price compared to other parts of the country, notably in Florida. Some builders figure rate buydowns—when builders effectively lower a home buyer’s mortgage rate—will remain a tactic to make buying a new home a more attractive option than purchasing an existing home.
- Demand for trucking services remained below par, while railroads reported continued robust intermodal freight volumes.
- Manufacturing activity was broadly stable compared to the previous six-week period. But a large brewer and distiller said demand was flat, and the long-term outlook could be weakening because people are drinking less in part because of GLP-1 weight-loss drugs and what the Beige Book termed alcohol alternatives.
- Some banks reported an increase in "buy now, pay later" financing, mostly for dining out and buying groceries. Five bank mergers were announced in the District. Contacts expect more such deals through the end of 2026.
- In the energy sector, oil refiners reported record profit margins as limited international capacity strengthened demand. One refining contact noted that American refiners can’t defer scheduled maintenance beyond early 2027, which will probably further limit supply and push prices higher.
- Farmers reported mixed conditions. GLP-1 drugs, the popular drugs used for weight loss, merited two mentions in the Beige Book. In the second case, a chicken farmer expects the drugs, which tend to change eating and thus buying habits, will lead to lasting demand for proteins like chicken and beef. Another poultry grower noted that demand is unusually weak as consumers were tired of chicken and were buying beef despite higher prices.
The Beige Book is a Federal Reserve System publication about current economic conditions across the 12 Federal Reserve districts. The Fed System and regional reserve banks publish the Beige Book eight times a year, before each meeting of the Federal Open Market Committee. The reports from each District characterize regional economic conditions based on a variety of mostly qualitative information, gathered directly from District sources, including interviews and online questionnaires completed by businesses, community organizations, economists, market experts, and other sources. The Committee next meets October 27 and 28.