U.S. economic activity continued to expand from early April to mid-May, but conditions varied across industries and the 12 Federal Reserve districts, the Fed said today in its fourth Beige Book report of the year. Most districts reported slight or modest growth, although two noted no change in activity.
Tight credit standards and high interest rates continued to constrain lending growth, according to the Fed. Housing demand rose modestly across the U.S., and single-family construction increased, though there were reports of rising rates affecting sales activity. Conditions in the commercial real estate sector softened amid supply concerns, tight credit conditions and elevated borrowing costs. Employment rose at a slight pace overall. Prices increased at a modest pace, but many districts reported that consumers pushed back against additional price hikes, which led to smaller profit margins as input prices rose on average, according to the report.