Economy Showing Strength, Beige Book Says

The U.S. economy and manufacturing sector showed signs of faster growth during the past six weeks, the Federal Reserve said Wedneday in its Beige Book report.

The report is released eight times a year from information compiled by each of the Fed's district banks. This report was prepared by the Richmond Fed and is based on information collected before July 21.

"Reports from the 12 Federal Reserve districts provided additional signs that the pace of economic activity increased a notch during June and the first half of July," the report said.

Eight of the regional banks reported "somewhat stronger growth," but Chicago, St. Louis and San Francisco reported continued "sluggish" activity. Atlanta said conditions were mixed.

Ten districts reported that manufacturing was either stabilizing or improving after a long slump.

The regional banks of Philadelphia, Cleveland, Atlanta and Richmond said that trucking firms in their areas saw increased activity. However, the Dallas Fed said trucking remains very competitive and there has been little change in activity or the outlook.

Atlanta also noted that that demand for new truck equipment remained low.