The Federal Reserve said today it saw signs the US economy is improving, especially in the long-suffering manufacturing sector.
A report by the central bank said goods prices still appeared soft in much of the country and there was an unexpected jump in car inventories during June and July. "Reports from the twelve Federal Reserve districts provided additional signs that the pace of economic activity increased a notch during June and the first half of July," the Fed said in its "beige book," which summarizes anecdotal information the central bank receives from its business contacts around the country.
"In particular, manufacturing activity edged higher in most districts, and Philadelphia and Richmond cited an end to the recent declines in production," the Fed said.
The report had a muted impact on financial markets. Treasuries held onto earlier gains while the dollar moved slightly lower.
The latest beige book report was prepared by the Federal Reserve Bank of Richmond and was based on information gathered before July 21st.