Economic activity increased at a slight to moderate pace in eleven of twelve Federal Reserve districts in late May and June, while one district reported no change, the Fed said in its fifth Beige Book report of the year.
Financial conditions were stable on net, and commercial and consumer loan volumes were both up modestly, according to the report. Commercial loan quality was stable, but consumer loan quality ticked down.
Consumer spending edged up as higher prices, particularly for fuel, dampened sales in other categories. Several districts noted declines in spending on discretionary items or trading down to more affordable varieties. Employment rose on balance, with five districts showing modest, moderate, or solid gains in employment, and with seven districts experiencing little to no change.
