In the May 2024 Beige Book report, the Federal Reserve highlighted the continued expansion of the U.S. economy from early April to mid-May. However, various industries and regions experienced different conditions during this period. Retail spending was either flat or slightly increasing, with consumers being cautious about discretionary spending due to price sensitivity. On the other hand, auto sales remained stagnant during this time.
Travel and tourism saw strong performance in many parts of the country, benefiting from both leisure and business travel. However, the hospitality sector had mixed outlooks for the upcoming summer season. Despite this, demand for nonfinancial services increased during this period. The transportation sector had mixed trends, with port and rail activities picking up while trucking and freight demand reports varied.
The lending growth was still constrained by tight credit standards and high interest rates, as stated in the report. As a result, lending activity remained sluggish. Nevertheless, the Federal Reserve will continue to monitor economic conditions closely and provide updates as they develop. Stay tuned for further updates on the U.S. economy.
In summary, despite some fluctuations in various sectors of the economy, overall expansion continued from early April to mid-May according to the May 2024 Beige Book report from the Federal Reserve
