Fed's 'Beige Book' Cites Continued Strong Economic Activity
he U.S. economy has continued to grow in recent weeks, supported by gains in manufacturing, housing and services such including trucking, the Federal Reserve said July 27 in its regional survey.
“Economic activity continued to expand in June and early July,” according to the survey, commonly known as the “Beige Book.”
“Overall price pressures eased slightly or remained unchanged” amid rising energy costs, said the eight-times-yearly survey. Wednesday’s survey was written by the Federal Reserve Bank of Kansas City using data collected on or before July 18.
Dallas and San Francisco noted an increase in demand at transportation firms, while Cleveland and Chicago said that demand for trucking was steady and that overall conditions for the industry remained favorable.
Chicago said trucking volumes held steady through the end of the second quarter, with one contact noting “overall conditions in the shipping industry remained good.” The district also reported that tire shortages were still limiting production of heavy equipment and heavy-duty trucks, though one contact said that a major tire maker was increasing capacity for large tires, potentially easing that constraint.
But the Fed noted that some transportation firms have seen activity fall slightly from the high levels experienced earlier in the year. Atlanta, like several other districts including Richmond and Cleveland, said there were not enough qualified truck drivers to fill the available jobs.
Most of the Fed’s regional banks reported “solid expansions in manufacturing.” The survey noted that while plant managers were raising output and increasing their plans to modernize or expand, “factory hiring remained sluggish.”
The Fed also noted “substantial increases in energy costs,” although some Fed districts said higher energy costs did not seem to be slowing consumer spending.
