U.S. News: Fed Sees Modest Growth As Jobs, Housing Improve
The U.S. economy inched ahead in July and early August, as the jobs picture improved slightly in some areas and the housing market continued to mend, the Federal Reserve said in a report Wednesday.</br></br>The economy expanded modestly in more than half the central bank's 12 districts, but some areas saw slower or mixed growth, the Fed said in its latest beige book report, which is based on anecdotes from business contacts and economists across the nation.</br></br>The economic snapshot was prepared by the Federal Reserve Bank of Boston based on information gathered on or before Aug. 20 and will be used for discussions at the Fed's next policy meeting, Sept. 12 and 13.</br></br>A separate report Wednesday showed U.S. gross domestic product grew at a 1.7% annual rate in the second quarter, a sluggish pace but better than the previous estimate of 1.5%. The faster pace was largely the result of upward revisions to consumer spending and export growth over the quarter.</br></br>The beige book showed a mixed picture of the U.S. economy, at a time when Fed officials have cited unusual levels of uncertainty about the recovery's progress. Tourism and a pickup in retail spending were bright spots noted by districts, along with an improvement in credit conditions. The real-estate sector also improved, both in residential and commercial markets.