The Federal Reserve’s May 2024 Beige Book report highlighted the continued expansion of the US economy from early April to mid-May, with variations in conditions across industries and regions. Retail spending was either flat or slightly up during this period, as consumers were cautious with their discretionary spending and were mindful of prices. Meanwhile, auto sales remained steady, while travel and tourism were strong in many parts of the country due to increased leisure and business travel. However, the outlook for the summer season in the hospitality industry was mixed.
The report also noted that demand for nonfinancial services increased, but activity in transportation services varied. Port and rail activity saw an increase, while reports on trucking and freight demand were mixed. Tight credit standards and high interest rates continued to impact lending growth, affecting the commercial real estate sector as supply concerns, credit conditions, and borrowing costs remained limiting factors.
In terms of energy activity, it remained stable overall. However, agricultural reports were mixed. Some regions saw easing drought conditions, but concerns about farm finances and incomes persisted. Business contacts expressed a more pessimistic outlook, with rising uncertainty and greater downside risks being reported.
By region, Kansas City and Richmond saw the strongest growth, with Kansas City reporting moderate economic expansion and Richmond experiencing modest economic activity growth. Other regions like New York, Philadelphia, Cleveland, Atlanta
