Beige Book: US economic activity continues to expand at a “modest pace”

According to the Federal Reserve’s Beige Book about the state of the economy, based on information collected before July 1, the economic activity continued to expand at a modest pace.

Key Quotes:

“Labor market conditions remained stable as employment continued to grow modestly since the previous report and wage pressures remained modest to moderate. Price pressures remained slight.”

“Wage pressures remained modest to moderate in most Districts, with the strongest pressures linked to skilled workers and difficult-to-fill positions.”

“Overall consumer spending was positive but with signs of softening. However, the outlook for consumer spending activity in the months ahead was predominantly optimistic across most reporting Districts.”

“Real estate activity continued to strengthen, and banks reported overall increases in loan demand. Agricultural activity was mixed but generally improving. The natural resources and energy sector has remained weak.”

“The outlook was generally positive across broad segments of the economy including retail sales, manufacturing, and real estate. Districts reporting on overall growth expect it to remain modest.

“Manufacturing activity was mixed since the previous report. The reporting Districts noted that the outlook remained positive but deteriorated.”