According to the Federal Reserve’s May 2024 Beige Book report, the US economy continued to show growth from early April to mid-May. However, different industries and regions experienced varying conditions during this period. Retail spending remained steady or slightly increased, with consumers being more cautious about discretionary spending and price sensitivity. Auto sales stayed mostly unchanged while travel and tourism thrived in many parts of the country, thanks to both leisure and business travel.
In terms of nonfinancial services, there was increased demand, and transportation services had a mixed performance. Port and rail activities saw growth, but reports on trucking and freight demand varied. Lending growth continued to be stifled by tight credit standards and high interest rates, leading to a softening of the commercial real estate sector due to concerns about supply, credit conditions, and borrowing costs.
Energy activity remained stable, while agricultural reports had mixed results as some Districts saw relief from drought conditions, but farm finances and incomes continued to be a concern. Business contacts were somewhat less optimistic, citing rising uncertainty and increased downside risks.
Regionally, Kansas City and Richmond showed the strongest growth, with Kansas City experiencing moderate economic expansion and Richmond seeing modest growth. Other regions such as New York, Philadelphia, Cleveland, Atlanta, Chicago
