WASHINGTON–To no one’s surprise, the economy remained “generally weak” for the past month and a half, according to the Federal Reserve Board.
In its periodic Beige Book report—a compendium of observations from economists, business leaders, academics and other observers polled in each of the Board’s districts—the Fed said that in most districts, observers used terms such as “softer,” “slower” or “sluggish” to describe the state of the respective area economies. At best, the Board said, several districts reported that conditions were stable or little changed.
Rising energy and food prices contributed both to lower consumer spending and to a decrease in domestic tourism. Manufacturing was soft, as demand for housing across most of the country weakened, although the commercial real estate sector’s health appeared to be “varied.”
Retailers who found they had to increase prices reported mixed results, the report said. “The overall pace of retail sales moderated” in seven districts, but remained “level” in three others. Boston and New York reported mixed retail sales pictures.
Although domestic tourism suffered, as families began taking vacations closer to home, international visitors boosted tourism in several districts.