All Federal Reserve districts said economic activity grew from mid-May through June, with most terming the expansion as "moderate" or "modest," according to the Beige Book, released Wednesday afternoon.
New York, Philadelphia, and Kansas City reported modest growth, while Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Dallas, and San Francisco termed expansion "moderate." Cleveland said growth was comparable to the prior period, while "Boston reported conditions were stable or improving."
Optimism about future growth was espoused by respondents in Boston, Philadelphia, Atlanta, Kansas City, and Dallas. Chicago and San Francisco, meanwhile, saw optimism in "specific sectors."
Consumer spending "varied," with some banks reporting higher spending as a result of depressed energy prices, and "some border Districts" saw weakness related to the rising dollar.
Car sales rose across the nation. Tourism improved in most regions, with New York notably excluded from groth.
"Reports on manufacturing activity were uneven across the country, but positive in Boston, Philadelphia, Richmond, Atlanta, Chicago, and St. Louis," according to the report.
Home sales were mostly better and prices rose, "although Philadelphia and Dallas reported sales were mixed, and New York reported a decline in sales volume."
Lending activity also grew. "Real estate lending was up in half of the Districts. Consumer lending, particularly auto loans, rose in several Districts. Districts that reported on delinquency rates indicated that they were low. Credit quality and credit standards were mostly unchanged since the previous report."
Employment was up or flat in most sectors, despite "some reports of layoffs in manufacturing and energy industries. Labor market tightness was reported in Boston, Atlanta, Minneapolis, and Dallas. Most Districts cited only modest wage pressures aside from positions that required specialized skills or were in high-demand. Prices for inputs and finished goods remained steady since the previous report."
