U.S. economy expands at modest pace in June: Fed survey

U.S. economic activity continued to expand at a modest pace from mid-May through the end of June, with modest growth in employment and slight price pressures, showed a survey released by the Federal Reserve on Wednesday.

"The outlook was generally positive across broad segments of the economy including retail sales, manufacturing, and real estate," said the Fed in its latest Beige Book which gauges its 12 districts' economy. The survey showed that districts expected overall growth to remain modest.

Labor market conditions remained stable as employment continued to grow modestly since mid-May, said the survey report.

With stable labor market, wage pressures remained modest to moderate across the districts. Price pressures remained slight.

Overall consumer spending was positive but with signs of softening, said the report. Most districts were predominantly optimistic about the outlook for consumer spending activity.

The Fed decided to keep interest rates unchanged in its June policy meeting due to uncertainty in the labor market and the U.K. referendum on its membership in the European Union.

Some Fed officials, including Fed governor Daniel Tarullo, recently called for more patience on interest rates hike due to low inflation and the uncertainty in the Brexit. Endit