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Fed report highlights dilemma: Higher prices and softer economy WASHINGTON (MarketWatch) - The economy continued to expand in most regions of the country in May and early June, but there are signs of a slowdown, the Federal Reserve said Wednesday in the Beige Book report on economic conditions. Price pressures were rising in most regions, but there was limited success in passing higher prices along to consumers, the Fed said. Wage pressures were said to be moderate. "Economic activity continued to expand" in all 12 Federal Reserve districts, "but there were signs of deceleration," the Beige Book said. In most regions, the economy could be summed up simply as "Healthy, but ..."

Odesláno

14 Jun 2006 18:00 GMT


BULLET: Fed beige book prepared for the Jun 28-29 FOMC:......
Fed beige book prepared for the Jun 28-29 FOMC: "econ activity continued
to expand from mid-Apr to early June but there were some signs of
deceleration." Four districts slowed: Atlanta, KC, Richmond, SF; and NY
reported "increased concern" about H2. Consumer spending was up but res.
real estate mkts "continued to cool." Labor mkts tightened but wage
pressures remained moderate. "High energy costs were fueling price
increases in mfg and, to a much lesser extent, retail." Cost pass-thrus
were more prevalent than in April. Retail sales weakened as auto sales
fell. Mfg and services were strong, lending mixed. Cost pressures
increased in 9 districts; fuels, metals prices high.
-
Prior April beige book said "economic activity continued to expand" in
all 12 districts.

Provided by: Market News Internationa

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