Fed Beige Book: Businesses Forecast Modest Growth Despite Trade Concerns

Economic activity continued to expand at a modest pace from mid-May through early July, although manufacturing production was generally flat, reported the Federal Reserve in its July 17 Beige Book. The Fed’s periodic survey of the market found businesses have a generally positive outlook for the coming months, with expectations of continued modest growth despite widespread concerns about the possible negative impact of trade-related uncertainty.

In most of the Fed’s 12 districts, sales of retail goods increased slightly overall, although vehicle sales were flat. Although some districts continued to report healthy expansion in the transportation sector, others noted that activity declined modestly. On balance, home sales picked up somewhat, but residential construction activity was flat. Nonresidential construction activity increased or remained strong in most reporting districts, and commercial rents rose.