WASHINGTON—The Federal Reserve Beige Book shows that all 12 Fed districts saw economic activity expand at least moderately in April and early May; Dallas was the exception as economic activity sped up to a solid pace.
The districts experienced some shifts in the pattern of growth as manufacturing strengthened from the previous report. Concerns about uncertain trade policies were still reported, but overall expectations for near-term growth were upbeat, said NAFCU Chief Economist and Vice President of Research Curt Long.
"The latest release from the Federal Reserve conveys an optimistic outlook on economic growth," said Long. "While concerns over potential trade policies exist, the current trajectory for the economy is enough to support a rate hike in June."
The Beige Book also found that consumer spending was soft as non-auto retail sales weakened somewhat and auto sales were flat. Loan demand picked up and banks reported increased competition had led to higher deposit rates, Long said.
Other important points from the Beige Book, according to Long:
- Most districts saw modest to moderate employment growth in April and May
- Wage growth was reported as modest, though some firms had responded to talent shortages with increased wages and bolstered compensation packages
- Prices rose moderately in most of the Fed districts