The U.S. Federal Reserve Board issued its latest “beige book”, showing that economic growth remains strong, but inflation pressure remains contained.

The latest report was prepared at the Federal Reserve Bank of Kansas City and based on information collected on or before July 18. It notes that reports from all 12 Federal Reserve districts indicate that economic activity continued to expand in June and early July.

Among the districts, Richmond and Dallas reported that the rate of economic growth increased, and Cleveland said economic growth was stronger and more balanced than in the spring. New York was the only district to report a slowing in the rate of economic growth.

Most districts reported increases in retail sales, and vehicle sales in nearly all districts were boosted by a new round of price discounting, the Fed noted. Demand for most services, including tourism, continued to increase across the country, and most districts noted moderate to solid expansions in manufacturing activity, it added.

Commercial real estate activity improved in most districts. And, residential real estate activity remained strong overall but showed a few signs of cooling in some areas. Bankers reported solid or increasing loan demand.

Labour markets generally continued to improve, although hiring in several districts was mixed, the Fed said. “Skilled worker shortages were reported in several districts, but nearly all districts said wage pressures remained moderate. Overall price pressures eased slightly or remained unchanged in most districts, despite substantial increases in energy costs,” it concluded.