Beige Book Indicates Slow Uptick In Economic Activity

The Federal Reserve's Beige Book survey of 12 regions indicates the U.S. economy is improving, but at a rate that is far from desirable. “Overall economic activity increased at a slow to moderate pace since the previous report across all Federal Reserve Districts except St. Louis, which reported a decline in economic activity. District reports indicated that consumer spending rose modestly during the reporting period,” the Fed said in its summary. The Fed said hiring was “subdued” while consumer spending ticked higher with gains in retail sales seen in Philadelphia, Cleveland, Minneapolis, and San Francisco. Tourism was strong in New York and Atlanta. Eleven districts showed increases in manufacturing with St. Louis the exception. “Stable employment levels or subdued hiring were mentioned by New York, Philadelphia, Cleveland, Atlanta, Chicago, and Dallas. Assessments of labor market conditions were mixed in Richmond and St. Louis, while labor markets showed some signs of reduced availability of labor in Minneapolis. In Boston, demand for workers at services firms grew, but hiring among manufacturers was limited,” according to the Fed.