U.S. economy continues to expand across most regions, Fed survey

The U.S. economic activities continued to expand across most surveyed regions and sectors during the period from July to mid-August, a survey by the Federal Reserve showed Wednesday.

In the Fed's latest Beige Book which gauges its 12 districts' economy, six districts reported "moderate" growth, five others cited "modest increases," while the Cleveland District noted only slight growth since the last report in July.

The survey showed a strong dollar, slowing overseas demand and falling energy prices continued to affect the U.S. manufacturing sector and exports. Some districts noted the strong dollar and slowing economic growth in Asia were dampening demand, and falling energy prices have led to reduction in demand for machinery and metals in some districts.

A majority of districts reported continuous expansion in retail sales and revenues, while some said their retail sales fell short of expectations. Most districts reported slight or modest growth in employment since July, and wages were relatively stable in most districts, with slight to moderate increases since last report in July.

The U.S. Commerce Department recently revised up its estimate for the real gross domestic product (GDP) in the second quarter to a growth of 3.7 percent, higher than an advance estimate of 2.3 percent. The revised-up figure beat market expectations that growth should have bounced back only mildly from a meager growth in spring.

The Fed is scrutinizing economic reports as it debates when and how to raise the benchmark interest rate. Though many Fed officials, including the Fed Chairwoman Janet Yellen, have repeated that it's appropriate to raise the benchmark interest rate this year, it seems that the U.S. central bank officials are divided over the timing of the interest rate hike.

Market investors widely see September or even later as the most likely time for a Fed rate increase. Endit