Mostly Propelled by a manufacturing rebound, as well as consumers who are eager to shop and sightsee despite high gas prices, the economy is humming a long; this according to the Fed.

According to report released yesterday, “Factory production was up in a majority of districts, an improvement from the previous survey that found manufacturing was slow in most Fed districts.”

“Consumer spending and retail sales across the country generally were up, too, with luxury goods selling better than lower-end merchandise in some areas. Travel and tourism remained healthy but there was little change in auto sales.”

Economists predict the Fed will again hold a key interest rate at 5.25%, where it has stood for a year.