Economic activity grew "at a modest to moderate pace" across the nation although the Dallas Federal Reserve District "reported strong economic growth," according to the Fed's Beige Book, released Wednesday.
Manufacturing expanded, with in the Boston, Cleveland, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco districts all reporting improved activity. Contacts in the New York District call activity "steady," while Philadelphia "manufacturers reported that orders and shipments have fallen somewhat, and in the Richmond District, manufacturing activity softened since the previous report, although there were scattered reports of improvement," according to the report.
Looking ahead, Boston firms were "reasonably optimistic," while Cleveland expects slow improvement in conditions in the last half of the year. "However, the near-term outlook has waned somewhat in the New York District," according to the report.
Consumer spending generally rose, with "modest or moderate" retail activity in the Boston, Philadelphia, and Dallas districts, and "slight growth" was seen in the Cleveland, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, and San Francisco districts. New York area retail sales "were tepid in April but picked up in May." The Richmond District said "sales were flat."
Weather held back retail sales in the Boston, New York, Philadelphia, Cleveland, Richmond, Chicago, and Minneapolis districts, with Chicago reporting "sales picked up once warmer weather arrived."
Nonfinancial services activity, the report noted, "grew at a modest to moderate pace."
Residential real estate and construction activity grew "at a moderate to strong pace" across the nation.
"Hiring increased at a measured pace in several districts, with some contacts noting difficulty finding qualified workers," according to the Beige Book. "Labor markets continued to improve in the New York district. The Boston district reported that with only a few exceptions, businesses were not hiring much beyond replacement, while labor markets in the Richmond district were uneven. Labor markets continued to improve slowly in the Chicago district. The St. Louis district reported that employment levels over the past three months have stayed the same or increased for a majority of contacts. Labor markets tightened in the Minneapolis district, particularly near the oil boom area in western North Dakota and eastern Montana, although some easing in the pace of growth was noted over the past six months. Labor markets were steady in the Dallas district."
