The U.S. economy expanded in the past two months, even as manufacturers in some regions took a hit from a stronger dollar and a slowdown in energy-related investment, a Federal Reserve report showed.
Four of 12 Fed districts reported "moderate" growth, and three others described the expansion as "modest," according to the Beige Book, which is based on reports gathered from early April to late May by regional Fed banks. Elsewhere, the pace of growth varied from "mixed" to "slight." Growth slowed in the Dallas Fed district.
The report offers central bank officials, who next meet June 16-17, anecdotal evidence about the state of the economy as they consider when to raise interest rates for the first time since 2006.
"Manufacturing activity generally held steady or increased over the reporting period," the central bank said.
A stronger dollar crimped industries including steel, with Fed banks in Boston, Cleveland, Chicago, Minneapolis and Dallas "noting its negative impact on export sales or capital investment in segments with significant overseas exposure."
Employment levels "were up slightly across districts," while "slight growth in wages was reported by most districts."
"Most districts reported an uptick in retail spending, and outlooks were positive, with retailers expecting continued sales growth in 2015."
Today's Beige Book was prepared by the Dallas Fed based on information collected on or before May 22.
