The US Federal Reserve's latest report says the US economy's growth pace slowed to a crawl at the end of 2007 due to slow spending, weak manufacturing and an extended slide in housing.
The Fed's Beige Book said economic activity increased 'modestly' from mid-November to December, but at a slower pace compared with the previous period.
It said retail spending during the key holiday season was 'subdued' and there was 'further weakness' in car sales. The housing market 'continued to be quite weak in all districts', it added.
The report was consistent with other indicators of softening economic conditions that is likely to prompt Fed policymakers to cut US interest rates further.
The Fed has already cut rates three times since September, slashing a full percentage point from its federal funds rate, which now stands at 4.25%. Many economists expect the Fed to cut rates another half-point this month.
