WASHINGTON — All 12 Federal Reserve Districts reported at least “modest” economic growth in April and May, the Federal Reserve Board said yesterday in its Beige Book of economic activity.
Consumer spending increased, especially in tourism, and business spending rose, but at a slower pace.
April and May retail sales increased, but mostly for necessities as opposed to discretionary, “big-ticket” items, districts said.
The report showed improvement in tourism. Districts reported increases in air travel and convention activity.
However, the Atlanta district said the Gulf of Mexico oil spill and floods in Tennessee during May resulted in some vacation cancellations.
“The potential exists for a much greater impact, although contacts are quite uncertain as to the ultimate effects,” the report said.
