WASHINGTON: The Federal Reserve slightly upgraded its view of the US economy yesterday, its Beige Book report on regional activity saying that manufacturing and construction continues to grow.
“Reports from the twelve Federal Reserve Districts suggest overall economic activity expanded at a moderate pace during the reporting period from late February to early April,” the survey said.
The previous Beige Book, a key input for monetary policy-making, was more tentative, calling growth “modest to moderate”.
Consumer spending was up only “modestly,” with some evidence that the payroll tax rise, higher petrol prices and winter weather were to blame. The jobs situation was unchanged or “somewhat” improved with hiring firmest in manufacturing, home construction, information technology and professional services.
While not backed by data, that picture was brighter than the monthly unemployment and job creation numbers reported on April 5, which showed a paltry 88,000 net jobs generated by the economy in March.
AFP
