Fed ‘Beige Book’ Sees Growth, Cites Some Economic Deceleration

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he U.S. economy continued expand from mid-April to through early June, but there were signs of deceleration in some areas, the Federal Reserve said Wednesday.

Demand for trucking, shipping, and rail services remained strong throughout the country, but companies cited difficulty finding and retaining drivers in the Atlanta and Cleveland districts, the report said.

The Fed’s latest “Beige Book” report, based on anecdotal interviews, was prepared by Federal Reserve Bank of Dallas, based on information collected in the 12 Fed districts from April 18 through June 5.

In the New York district, one trucking-industry expert said that business “remains fairly strong and that firms have been able to add fuel surcharges with relatively little resistance from customers,” the report said.

The Atlanta district noted that generally, pricing has remained firm, allowing most truck-ing companies to recover part of the higher fuel costs. Driver shortages, especially for long haul truckers, have continued to cloud the otherwise favorable business outlook, it said.

Capital spending in the trucking industry remains strong, as firms attempt to purchase trucks that do not need to meet impending EPA guidelines set to take effect next year, the Cleveland district reported.

One North Carolina-based trucking contact said customer demand remained solid and that a new distribution center near Greensboro was likely to boost the area's economy going forward.

The Beige Book is published eight times a year, roughly two weeks before the Fed’s next rate meeting. The Federal Reserve Open Market Committee’s next meeting is scheduled for June 28-29.