Even with energy prices and building costs rising, the Federal Reserve announced that business activity in the United States continued to grow in June and July.
“Most districts reported increases in retail sales and reports on retailers’ expectations were generally positive,” said the Federal Reserve’s survey of business climate around the country.
The picture was consistent with the assessment Fed Chairman Alan Greenspan offered last week when he delivered the central bank’s midyear economic outlook to Congress.
At that time, Greenspan signaled that short-term interest rates will continue to move higher in the months ahead in an effort to keep the economy and inflation on an even keel. Economists widely expect Fed policymakers will boost rates by another quarter-percentage point at their next meeting, Aug. 9. The Fed’s survey appears to support such a move.
Wage pressures were moderate in most of the districts, and the survey showed general improvement in Labor Markets. Manufacturing also showed improvement.
Real estate stayed very positive in most districts, but slowed slightly in some. According to the survey, consumer spending also remained positive, though the Conference Board reported earlier this week that consumer confidence dropped in July.
Chris is a staff writer for murdok. Visit murdok for the latest ebusiness news.
