Fed: Growth improves moderately throughout US
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WASHINGTON - The US economy grew throughout the country from late May through early July, bolstered by the housing recovery, consumers and more factory output.
A Federal Reserve survey released Wednesday showed eleven of the Fed banking districts reported ``modest to moderate'' growth, while Dallas reported ``strong'' growth for the second straight survey.
Housing construction and home prices improved, while consumer spending increased in most districts, fuelled by rising car and truck sales. The housing recovery is also driving more production of lumber, materials and construction equipment.
The report says hiring held steady or increased in most districts. But employers in some districts were reluctant to hire permanent or full-time workers.
Five districts reported strong auto sales, up from just three in the previous report. Retail sales rose in nearly all districts except for New York.
The Beige Book survey is based on anecdotal reports from businesses. The latest report painted an optimistic picture of an economy growing at a steady pace. Job gains have picked up this year, bolstering incomes and enabling consumers to spend more.
In his semiannual testimony to Congress yesterday, US Federal Reserve Chairman Ben S. Bernanke opened the door to a delay in reducing the central bank's bond buying pgoramme, saying it will depend on data that economists say are falling short of the Fed s own forecasts.
