Fed Beige Book Finds Slight Economic Growth

U.S. economic activity maintained a “slight to modest” pace of growth since late May, the Federal Reserve System’s Beige Book reported Wednesday.

The Fed publishes the report before meetings of the Federal Open Market Committee, which sets interest rates. The FOMC will meet July 30 and 31.

“While seven [of the Federal Reserve System’s 12] districts reported some level of increase in activity, five noted flat or declining activity—three more than in the prior reporting period,” the report said. “Wages continued to grow at a modest to moderate pace in most districts, while prices were generally reported to have risen modestly. Household spending was little changed this period according to most district banks.”

Reports on residential and commercial real estate markets varied, but most banks reported only slight changes, if any, in recent weeks, the Federal Reserve System said.

Meanwhile, expectations point to slower growth over the next six months due to uncertainty around the upcoming election, domestic policy, geopolitical conflict and inflation, the report said.