The US Federal Reserve said the US economy grew at a modest pace this fall, lifted by higher consumer spending, and more home sales and construction.
The Fed said on Wednesday in its latest snapshot of the economy that nine of its 12 regional banks reported growth was modest or moderate from early October through mid-last month.
The New York Fed said growth leveled off, while it slowed in Boston and was mixed in Kansas City.
The Fed’s report suggests that healthy consumer spending is offsetting overseas headwinds that have weighed on US manufacturers.
The report, known as the Beige Book, is released eight times a year and consists of anecdotal reports from businesses in each of the 12 districts.
It is to be used for discussion when the central bank next meets on Tuesday next week. Fed officials at that meeting are widely expected to raise interest rates for the first time in nine years.
In a speech on Wednesday, Federal Reserve Chair Janet Yellen signaled that a rate increase is likely, provided that the economy continues to grow at its current pace and hiring stays healthy.
Last month’s jobs report is being released today and economists forecast that it would show that employers added 200,000 jobs, while the unemployment rate remained at 5 percent.
All 12 of the Fed’s districts reported that hiring picked up in the past two months.
However, many said that the job gains were driven by temporary and entry-level positions that were filled by staffing firms.
In most districts, wages rose only for skilled positions that companies were having difficulty filling.
However, the Atlanta Fed said that there were signs that employers are paying more for entry-level, lower-skilled jobs.
Home sales rose in seven of 12 districts, the Beige Book said, while housing construction increased in most Fed districts as well.
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