The outlook for the US economy has become 'cautiously positive' with conditions stabilising from the deep recession, the Federal Reserve said in its Beige Book report.
Some areas of the US are seeing firming economic activity, with others showing improvement, according to the survey of conditions released by the Fed to be used by policymakers at their September 22-23 meeting.
'Reports from the 12 Federal Reserve districts indicate that economic activity continued to stabilise in July and August,' the Beige Book said.
'Most districts noted that the outlook for economic activity among their business contacts remained cautiously positive.'
The report is consistent with other data suggesting the US economy is starting to emerge from the brutal recession that began in December 2007.
US gross domestic product shrank at a 1.0% pace in the second quarter after a steep 6.4% pace of decline in the first quarter. But more recent data suggest growth in the third quarter.
The Beige Book said that retail sales, the main driver of economic activity, were flat in most regions. But the 'Cash for Clunkers' trade-in incentives program boosted traffic and sales for cars.
Most regions reported some improvement in residential real estate markets despite 'downward pressure on home prices' in much of the country. Commercial real estate demand however was 'weak' around the US, the report said.
Manufacturing was a bright spot, according to the Fed, with improvements in most regions, consistent with other surveys indicating ramped up industrial production.
