Fed reports modest growth around nation in new survey
WASHINGTON — The Federal Reserve reports that the U.S. economy grew at a modest rate this fall, with solid gains in consumer spending helping offset lingering weakness in exports.
The Fed’s survey of economic conditions around the country found that seven of its 12 districts described growth as modest to moderate. Another three districts — Philadelphia, Cleveland and Kansas City — saw a “slight” pace of growth. Richmond viewed activity as mixed, and New York said activity had been flat.
The survey, known as the “Beige Book,” will be used when Fed officials meet on Dec. 13-14. The central bank is expected to raise a key interest rate slightly in response to steady gains in employment and a modest pickup in inflation. The Fed has not raised rates in a year.
A majority of districts reported higher retail sales, especially for clothing and furniture. These gains helped to offset a slowdown in sales of new autos. Some districts noted a shift in purchases from new cars to used vehicles.