Fed's Beige Book Hints At Sputtering Economy

(RTTNews) - The U.S. economy continued to plod along after another rough winter, according to the latest Federal Reserve Beige Book released on Wednesday.

Seven districts reported "moderate" or "modest" growth in May, while others described growth as "slight," "mixed," or "steady."

A number of economists were expecting the U.S. to snap back in the second quarter after a brutal start to the year, but it appears for now that the recovery has stalled.

Stronger growth is seen later in the year, but the strong dollar has been hurting manufacturers of late.

Meanwhile, a big drop in crude prices has weighed on energy-dependent regions, particularly the northern Midwest.

In Cleveland and San Francisco, low gasoline prices "provided a tailwind for consumer spending," but Atlanta said no such effect was seen.

Among the brighter spots in the report, the auto industry has performed well amid renewed demand for trucks and SUV's amid low gas prices.

Home sales were also on the rise.