WASHINGTON - Economic activity increased at just eight of the 12 Federal Reserve Banks, compared to all 12 growing in the last report, a sign that growth has stalled somewhat since earlier this year, the Federal Reserve Board said today in its Beige Book of economic activity.
Fed banks reported that despite this moderation, manufacturing activity has continued to expand in most districts. Tourism and retail sales for necessity goods were also generally strong, the Fed banks reported.
Auto sales and real estate activity, for both residential and commercial properties, have weakened, the report said.
This Beige Book survey was compiled by the Federal Reserve Bank of St. Louis based on information collected by July 19.
The Cleveland and Kansas City districts reported economic activity held steady during the survey period. The Atlanta and Chicago districts said their regions saw a slowdown in economic activity.
Most districts said lending standards remain restrictive. The Philadelphia, Cleveland and Richmond districts continued to report above average loan delinquencies.
Seven districts said labor markets improved or held steady.
The Atlanta District, which includes the southeast states most affected by the Gulf oil spill, said that cancelled vacations have been replaced by the presence of clean-up crews, oil company workers and the National Guard. Inland businesses reported hotel bookings have increased as a result of deflected business from the oil-affected areas, the Atlanta Fed said.
Federal Reserve Board Chairman Ben Bernanke said during Congressional testimony last week that the economic outlook was “unusually uncertain.”
Earlier this month, the Federal Open Market Committee minutes from its June meeting showed that the Fed lowered its forecast range for 2010 GDP growth to 3.0% to 3.5%.
