U.S. maintains slight to modest pace of economic growth: Fed Beige Book

WASHINGTON, July 17 (Xinhua) -- U.S. economic activity maintained a slight to modest pace of growth in a majority of districts from late May through early July, with more districts reporting flat or declining activity, the U.S. Federal Reserve said in its Beige Book released on Wednesday.

While seven districts reported some level of increase in activity, five noted flat or declining activity -- three more than in the prior reporting period, the Fed survey noted.

Wages continued to grow at a modest to moderate pace in most districts, while prices were generally reported to have risen modestly, the report said.

The U.S. personal consumption expenditures (PCE) price index, the Fed's preferred inflation measure, rose 2.6 percent in May from a year ago, still higher than the central bank's long-term inflation target.

In a congressional hearing last week, U.S. Federal Reserve Chair Jerome Powell indicated that the Fed was inching closer to a rate cut decision, but greater confidence in progress on inflation is needed before taking such action.

The Beige Book also noted that most districts saw soft demand for consumer and business loans.

Expectations for the future of the economy were for slower growth over the next six months due to uncertainty around the upcoming election, domestic policy, geopolitical conflict, and inflation, it added.

The Beige Book is a survey on current economic conditions based on information collected from its 12 regional reserve banks.