U.S. Fed report shows "modest to moderate" growth since April

The U.S. Federal Reserve said on Wednesday that the country's economic activity grew "at a modest to moderate pace" from April through mid-May, boosted by housing recovery and steady growth in consumer spending.

Eleven of the Fed's banking districts reported "modest to moderate" economic growth and Dallas, the 12th region, reported strong growth, the Fed noted in its latest survey report, also known as the Beige Book.

Most areas reported expansion in manufacturing sector and " slight to moderate" gains in consumer spending. Automobile sales increased moderately in most districts, and tourism showed signs of strength in several districts, said the central bank.

Residential real estate and construction activity increased at a moderate to strong pace in all districts. Commercial real estate and construction activity grew at a modest to moderate pace in most districts, noted the report.

"Overall bank lending increased since the previous report" and "hiring increased at a measured pace in several districts," said the Fed.

Investors will seek clues from the Beige Book for the central bank's policy intentions. The focus now is when the Fed would begin to scale back its massive bond-purchasing program. The Fed officials want to see sustained improvement in the labor market and durable recovery of the overall economy.

The Beige Book is based on economic information supplied by the Fed's 12 regional banks and is released eight times a year to provide a snapshot of the local economy. It is updated two weeks before each of the Fed's policymaking meeting.