Factory Sector Continuing to Expand, Fed Says
he economy expanded from April through early June with "broad-based" manufacturing growth, the Federal Reserve said Wednesday.
In its regular survey on economic activity known as the Beige Book, the Fed said that manufacturing activity rose in all 12 of its districts, while increases in consumer prices were modest.
The Beige Book is released eight times a year from information compiled by each of the Fed's district banks. This report was prepared by the St. Louis Fed and was based on information collected before June 7.
The New York, Philadelphia and Cleveland banks each said the factory sector was showing significant growth, and that was increasing the demand for trucking services. New York also said high demand and limited capacity was allowing truckers to pass along fuel cost increases to their customers.
Similarly, the Atlanta Fed said trucking contacts were reporting strong demand for freight shipments, but also a shortage of drivers.
In Kansas City, many trucking and rail firms have increased rates due to rising fuel costs and increased demand, the Fed said.
And in Chicago, the Fed said the volume of goods shipments were increasing and more trucking firms were investing in tractors and trailers.
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