Fed Survey Reveals Economic Strength

The U.S. economy grew at a moderate pace in March and April, with stronger activity in retail sales, real estate and even manufacturing, the Federal Reserve said Wednesday in its latest survey of regional economic conditions.

The Fed report found little sign of inflationary pressures, discounting recent spurts in gasoline and food prices as temporary.

“Economic activity advanced at a moderate pace in March and April,” the Fed said in its summary of reports from its 12 regional banks.

The survey showed all districts except New York reported a pickup in economic activity during the past two months with most reporting strength in retail sales and manufacturing, where an overhang of unsold inventories has been depressing production for much of the past year.

While the prices of gasoline and some food products have been surging in recent weeks, the central bank took the view that the spurt was likely to be temporary and not lead to an overall inflation spiral.