Growth Continues to Plod Along, Says Beige Book

The Federal Reserve released its latest Beige Book this week, formally known as the “Summary of Commentary on Current Economic Conditions by Federal Reserve District. Reports from the 12 Federal Reserve Districts suggest that national economic activity continued to expand in late February and March, though the pace of growth varied across districts.

Most districts said that economic growth was in the “modest to moderate” range, which has been the case for a long while now, and that most of the Fed’s sources of information expected growth would remain in that range going forward. Consumer spending increased modestly in most places and reports on tourism were mostly positive. Labor market conditions continued to strengthen and business spending generally expanded.

Construction and real estate activity also grew. Residential real estate activity strengthened, on balance, with robust growth in San Francisco, Cleveland, and Boston, but more mixed reports from Dallas, Kansas City and Atlanta (these refer to the districts, whose territory is always larger than the city they’re named after). Multifamily construction remained strong in most districts. Commercial real estate activity also increased, with leasing activity and rents rising in many districts. Particularly strong leasing was noted in retailing in Chicago and in the industrial sector in Dallas.

Also reported this week: the Bureau of Labor Statistics said that the Consumer Price Index for All Urban Consumers increased 0.1 percent in March. Over the last 12 months, the all items index rose 0.9 percent. The food index declined in March, while the indexes for energy and for all items less food and energy, the so-called core rate, rose. The energy index rose for the first time since November, with all of its major components except natural gas increasing.