The US economy picked up some steam in November as consumer spending rose modestly, the Federal Reserve said this evening in a report for a monetary policy meeting next month.
"Overall economic activity increased at a slow to moderate pace since the previous report" on October 19, the Fed's regular Beige Book review of regional economies said.
The report, a compilation of anecdotal information by the Fed's 12 districts nationwide, is to be discussed at the Federal Open Market Committee's last meeting of the year, on December 13. Only the St Louis Fed, whose district includes Alabama and parts of six other states, reported a decline in economic activity.
Business activity in the massive service sector was "flat to higher" since the prior report, while manufacturing activity rose "at a steady pace" across most of the nation, the Beige Book said.
Consumer spending, which typically accounts for two-thirds of US economic output, increased "modestly," it said, noting a gain in automobile sales and "signs of strength" in tourism, especially in New York and Atlanta, Georgia.
However, there was little sign of improvement in the embattled job market, where the unemployment rate has been stuck at 9% and above since April. "Hiring was generally subdued," said the central bank, whose dual mandate is full employment and price stability.
The Fed also said price increases remained "subdued" and some cost pressures were reported to have eased. At the November 1-2 FOMC meeting, the central bank maintained its ultra-low interest rates and rate-pressuring bond purchases, but added no new measures to stimulate the economy.
