Fed Reports Modest Growth for Most Areas

Retail sales are generally positive across the country but manufacturing in some areas continues to feel the pinch of weakening home sales, according to the latest Beige Book, a summary of economic conditions
published eight times a year by the Federal Reserve Board.
Most regions reported only modest or moderate overall economic expansion since the last report was issued in early March, but two districts - New York and Minneapolis - said growth was steady and firm. Another district, Dallas, characterized growth as moderately strong.
The early Easter was credited for sales growth in many districts. Apparel and spring merchandise were strong sellers while demand for home goods declined. Reports on vehicle sales were mixed among the districts. Kansas City and Philadelphia said they had improved but were still below year-ago levels. Sales were up from a year ago in the St. Louis district.
Residential real estate sales continued to weaken in most areas, although Boston noted some improving markets. Declining homebuilding activity hurt sales for manufacturers that support residential construction. Commercial real estate markets continue to be active and there were several reports of robust commercial construction activity.
Dallas reported strong railroad cargo and trucking volumes while Atlanta reported weak demand for freight transportation.
Most districts said the labor market continues to be tight, especially for skilled occupations. Wage increases for skilled workers outpaced moderate wage growth for workers in general. Consumer prices remained generally stable though most districts noted rising prices for energy and inputs, particularly metals and raw materials.