The beige book compiles anecdotal reports on economic developments. It's used by the Fed's policy-setting Open Market Committee in interest rate deliberations. The FOMC's next meeting is May 15. The outlook is published eight times a year in advance of FOMC meetings. Still, retailers in most districts are expecting only small gains, at best, in coming months,'' the beige book said.
Energy prices are a growing problem.
There are also concerns about rising electric prices. High gasoline prices damped demand for sport utility vehicles, luxury vehicles and trucks. More recent developments suggest the economy, while still not expanding rapidly, may have bottomed out from its slowdown. Manufacturing, though still weak, is no longer worsening. The slowdown has loosened labor markets.