The U.S. economy expanded at a "modest to
moderate pace" from mid-February through late March, the rate-setting
Federal Reserve reported Wednesday.
In its "Beige Book" report on economic activity in regions across
the country, the central bank said that manufacturing continued its
expansion in most areas "with gains noted in automotive and
high-technology industries."
Manufacturers "expressed optimism about near-term growth
prospects, but they are somewhat concerned about rising petroleum
prices."
There was "some improvement" in residential housing, with reports
of increased construction of multi-family housing, the Fed said.
Regionally, the housing sector remained "lacklustre" in parts of the
Midwest and the West Coast.
The collapse of the US housing bubble in 2007 helped precipitate
the deep 2008-09 recession, and continued weakness in the housing
market has continued to drag on the tepid economic recovery.
Business services showed "modest to strong growth" while freight
volume was "mainly higher," the Fed said. Retail spending was helped
in many regions by unseasonably warm weather.
The Fed said that the near-term outlook for household spending was
"encouraging," but cited concerns that rising petrol prices "could
limit discretionary spending in the months to come."
Wage increases and other inflationary pressures were "modest,"
except for fuel prices.
The US unemployment rate dipped in March to 8.2 per cent, though
the pace of payroll expansion slowed.
In the Beige Book report, the Fed said that "hiring was steady or
showed a modest increase" in many parts of the country. "Difficulty
finding qualified workers, especially for high-skilled positions, was
frequently reported," the report said.
