American economy still on growth track: U.S. Federal Reserve

U.S. economic activities in 12 districts expanded from early April to late May, and the outlook given by respondents was generally optimistic, a survey by the Federal Reserve showed Wednesday.

The Fed's rosy outlook suggested the American economy might shake off the softness at the beginning of this year.

In the Fed's latest Beige Book which gauged its 12 districts' economy, four reported "moderate growth," three others cited modest growth, and the rest said the pace of growth varied from " mixed" to "slight." Growth slowed in Dallas district, possibly due to downturn in the oil and gas industry.

The survey showed a strong dollar and slowdown in energy investment continued to affect the U.S. manufacturing sector, with growth mostly flat or weaker in most districts.

One of the positive aspects in the survey is that residential real estate activity and construction expanded in most districts and the outlook was largely positive. In the previous survey, housing activities remained mixed among districts.

Employment remained steady, and most districts reported slight growth in wages, a good sign for the economy.

Some economists seem more cautious about the economic outlook, arguing the negative impact from a strong dollar and large decline in oil prices might be worse than expected.

Lael Brainard, governor of the Fed board, warned Tuesday that the strong dollar could continue to impose downward pressure on exports and the prices of imported goods.