The US economy is speeding up across a broad front and employers have stepped up hiring of new workers, the Federal Reserve's Beige Book survey showed tonight.
'Economic activity increased across the nation from mid-February through early April,' the report said. Its data is drawn from the central bank's 12 districts and is released eight times a year.
'The growth was widespread as retail sales moved up noticeably, and manufacturing, mining energy, tourism and services all grew,' the US central bank said. Labour supply tightened a little, producing 'modest' wage increases, the report said. 'Most districts indicated that hiring increased moderately,' it added.
It was brightest Beige Book verdict in years, confirming still-solid economic activity after a 4.1% expansion in the last quarter of 2003 and an emergence from three years in the dumps for the labour market.
The economy churned out a four-year record gain of 308,000 new jobs in March, according to latest data. If a strong jobs pace can be maintained, many economists expect interest rates to rise this summer.
Despite the hotter economic activity, however, wage and salary increases were modest, although there were 'significant' increases in the cost of health benefits for workers, the report said.
Consumer prices rose modestly. The price of commodities and other raw materials, however, rose markedly in most districts.
