WASHINGTON - The U.S. economy continued to grow during April and May, but there is concern the country's 10th consecutive year of growth might be slowing with reports of increased price inflation in many areas, the Federal Reserve reports.
The Reserve's latest Beige Book showed traces of slowing in several categories, including borrowing and home building, despite reports of "solid economic growth" nationwide. Businesses in many regions reported increasing inflationary pressures, reflected in the rising prices of petroleum products, natural gas, metals, paper and some construction materials.
Retail sales, primarily of new cars and other costly durable goods, slowed in half of the country's 12 federal districts, giving credence to other economic reports of rising credit costs as economic expansion slows.
The Commerce Department last week said retail sales dropped for the second consecutive month, while consumer prices rose in May, according to the Labor Department.
On employment, the Beige Book notes the limited number of potential employees has stabilized since its May report and despite rising consumer prices, wages for permanent employees do not appear to be rising. Sizable raises are needed to attract temporary and seasonal workers.
In light of the report, analysts expect the Fed to keep interest rates steady until it has a chance to evaluate the effect of six interest-rate rises over the past year.
