U.S. Economy, Labor Market are Improving

The beige book report was prepared by the Fed's Bank of Chicago and based on data collected on or before May 28. In its last beige book, released April 14, the Fed said the economy improved in most of the U.S.

 
Courtesy of Daily Photos & Frugal Travel Tips.

The economy improved across the U.S. in April and May but growth was considered modest, while labor market conditions got a little better, according to the Federal Reserve.

In its beige book report, the Fed said consumer spending increased. Tourism also rose, but there were concerns about the impact of the Gulf of Mexico oil spill. Business spending climbed and employment in the U.S. edged up.

Economic activity continued to improve since the last report across all 12 Federal Reserve districts, although many districts described the pace of growth as modest.

Prices of final goods and services were largely stable. Higher input costs were not being passed along to customers and wage pressures continued to be minimal.

The Fed said non-financial services, manufacturing and transportation continued to gradually improve during the spring. A government subsidy boosted residential real estate in many Districts. The tax credit for homebuyers expired April 30.

But commercial real estate remained weak. Financial activity was little changed, although a few districts noted a modest increase in lending.

Contacts in some districts cited concerns over the potential impact of the European fiscal crisis on financial and business conditions, and reported a corresponding increase in uncertainty and financial market volatility.

- Courtesy of Wall Street Journal