Beige Book: Economic activity ticked up in May, June

Economic activity rose at a mild to moderate pace in eleven of the Federal Reserve’s twelve districts in late May and into June, while one district reported no change, the Fed said in its fifth Beige Book report year.

Financial conditions were stable across the board, with commercial and consumer lending growing modestly, the report said. The quality of commercial loans was stable, but the quality of consumer loans decreased.

Consumption increased as higher prices, particularly fuel, reduced sales in other categories. Several districts saw a decline in spending on discretionary items or a shift to more affordable types. Employment increased on balance, with five counties showing modest, moderate, or solid gains in employment, and seven counties experiencing little or no change.