Economy Expanding Modestly, Beige Book Says
The U.S. economy has expanded modestly since early June with solid increases in activity in the Cleveland and St. Louis districts, the Federal Reserve said in its Beige Book report released Wednesday.
However, the report, written by the Federal Reserve of New York, cited a slowing of growth in New York and Atlanta.
A summary from the Richmond district said has been strong growth in shipping activity.
Construction was categorized as strong, while retail sales were mixed, as four districts indicated some weakening, but five reported an increase in recent weeks. Although there were no complains about current retail inventory levels, New York and San Francisco noted there has been some inventory accumulation in anticipation of a potential longshoremen's strike on the West Coast.
Labor markets were generally characterized as slack but relatively stable.
The Fed also noted there still is a general sense of optimism about the near-term outlook, though there remains concern the stock market decline could affect the overall economy.
The Beige Book is released eight times a year from information compiled by each of the Fed's district banks.
