Beige Book: Recovery Slowing in Some Areas

WASHINGTON - Reports from most of the twelve Federal Reserve Districts indicated that overall economic activity continued to expand at a modest to moderate pace in June and early July, according to the Beige Book, released Wednesday.

“The Atlanta, St. Louis, and San Francisco Districts reported modest growth, while Boston, Chicago, Minneapolis, Kansas City, and Dallas described economic activity as advancing moderately,” according to the Beige Book summary.  “The New York, Philadelphia, and Cleveland Districts noted that activity continued to expand, but at a slower pace since the last report, while Richmond cited mixed activity.”

The housing market reports were “largely positive,” the book states, with sales and construction levels rising and inventory levels falling. Manufacturing activity, however, was a mixed bag.

“Cleveland, Atlanta, Chicago, and Kansas City cited slight increases in production levels,” the book states. “However, several Districts reported a deceleration in new orders, and the Philadelphia and Richmond Districts reported declines in shipments and orders.”

Overall, Fed contacts remained “cautiously optimistic” about future business conditions.

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