Economy Gained Modestly In April, Fed Report Says
to an anemic 1,8 percent in the first quarter from a five-year high of 4.7 percent in the fourth quarter.</br></br>Compared with most private analysts, the Fed is attributing more of the slowdown to a mid-March blizzard that hit the eastern United States.</br></br>'The basic message was the weather was an important factor in the economyÛªs slowing, thereÛªs no fundamental weakness and, as the weather improves, the statistics should improve,Û said economist Robert G. Dederick of the Northern Trust Co. in Chicago.</br></br>In its report, the central bank was particularly upbeat about manufacturing. Steel and auto factories are operating at near capacity, and most manufacturers are reporting increased orders. However, it noted that most factories are meeting higher production schedules through overtime rather than increased hiring. No region ÛÏanticipates a flurry of new hiring in the near term,Û the report said.</br></br>Noting other upbeat developments, the report said residential real estate activity is strong and on the rise in most regions.