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.
- Pipeline companies weather downturn in prices of natural-gas, oil
- Super Bowl ads win by playing to viewers’ emotions, experts say
- U.S. Steel maps out greater efficiency for 2015
- ‘Patient’ Fed keeps interest rates flat
- Super Bowl draws big increase in first-time advertisers
- Alibaba ripped in report
- McDonald’s replaces CEO amid sales decline, effort to transform image
- Pennsylvania shale gas producers received hundreds of environmental citations in 4 years, PennEnvironment says
- Obamacare enrollment up in Pennsylvania
- SEC alleges BNY Mellon bribed foreign investors by handing internships to their relatives
- U.S. Steel warns it may lay off almost 2,000 workers in Alabama, Texas