Fed survey points to modest growth
WASHINGTON — A Federal Reserve survey says economic growth increased throughout the United States from April through late-May, fueled by home construction, consumer spending and steady hiring.
Eleven of the Fed's banking districts reported “modest to moderate” economic growth, according to the Beige Book survey released on Wednesday. The 12th, in Dallas, reported strong growth.
The survey is based on anecdotal reports. The mostly favorable results of the latest survey suggest that the economy and the job market are improving despite tax increases and government spending cuts that took effect this year.
But the modest or moderate improvement reported for most regions appears to fall short of the strong and sustained growth that several Fed members have said is needed before the Fed starts tapering its bond purchases. Those purchases have helped keep interest rates at record lows.
“The Fed's Beige Book wasn't too downbeat, but it wasn't too upbeat either,” said Jennifer Lee, senior economist at BMO Capital Markets. “It points to generally modest growth in the second quarter.”
Manufacturing activity expanded in 10 districts, the survey noted. But there were concerns that government spending cuts might slow factory activity, particularly in defense industries.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Signs of steady U.S. economy: Pay, home sales up, unemployment applications down
- Nutritional supplement makers, led by GNC, want to create voluntary safety standards
- Covestro leader MacCleary finds stability amid change
- Take steps to make it harder for holiday hackers
- Smartphones expected to overtake desktops for holiday shopping
- Union leaders warn Post-Gazette newsroom of possible layoffs
- Many Black Friday deals not worth the hassle
- Powder metals fabricator Atlas Pressed Metals diversifies appeal to customers
- Auto review: Cadillac CTS-V makes big impression with speed, power, comfort
- Bankrupt Quaker Steak & Lube to be sold for $25M
- Coke had hand in shaping nonprofit health group, emails show