Beige Book finds moderate economic growth, steady hiring

By Peter Schroeder - 06/06/12 02:34 PM ET

The Federal Reserve reported that the economy appeared to be growing at a "moderate pace" while hiring held steady in the month of May.

The latest edition of the Fed's "Beige Book" — the central bank's collections of anecdotes from business contacts nationwide — paints a slightly rosier picture of the jobs market than May's disappointing jobs report, which found the economy added just 69,000 jobs that month.

"Economic outlooks remain positive, but contacts were slightly more guarded in their optimism," it stated.

On the jobs front, the Fed found hiring to be steady or modestly increasing in most areas, especially in the manufacturing, construction, information technology and professional services sectors. In fact, some regions said they were struggling to find enough qualified hires, especially in high-tech positions.

The findings were collected by the Fed before May 25 and will help guide it as it sets monetary policy at its next meeting at the end of June.

The disappointing jobs report has driven fresh speculation that the Fed might step in and try to boost the economy again. Some top Fed officials have indicated they are content with their current efforts, so long as the economy continues to show gains, but could step in if the recovery loses momentum. The question now is whether the May jobs report, when coupled with other disappointing economic indicators, is pushing the Fed to reconsider its current policy stance.

However, the Beige Book paints an economic picture that has been relatively consistent for the last several months: that the economy is expanding, but slowly.

Beyond the jobs sector, businesses cited concern about the European debt crisis, as well as policy challenges facing U.S. lawmakers in the coming months, as weighing on future business conditions.

For example, while the construction industry was relatively positive on the trajectory of the economy, sources pointed to uncertainty over the coming "fiscal cliff" and Europe's woes as reasons for concern.