Economy Expanded Slowly, Fed’s 'Beige Book' Reports

The U.S. economy expanded at a measured pace in recent weeks, the Federal Reserve said.

The Fed said that its Cleveland, Richmond, Atlanta, Chicago, Kansas City, Dallas, and San Francisco grew at a modest pace, while St. Louis and Minneapolis indicated a somewhat stronger increase in activity.

In contrast, Boston reported a slower rate of growth. Weaker conditions in New York were attributed to widespread disruptions at the end of October and into November caused by Hurricane Sandy.

Philadelphia reported general weakness that was exacerbated by the hurricane. However, in the Boston and Richmond Districts, the storm’s effects were limited.

Among key sectors, consumer spending grew at a moderate pace in most Districts, while manufacturing weakened, on balance.

Seven of the 12 districts reported either slowing or outright contraction in manufacturing, and two others gave mixed reports. In some cases, such as high-tech equipment and steel production, an industry slowed in one District while strengthening in another.