US economy grows slowly on consumer spending

US economy grows slowly on consumer spending Washington: US economic activity grew "at a modest to moderate pace" in recent months on further expansion in consumer spending, US Federal Reserve said.

Five districts reported that economic growth was moderate in January and early February, and five other districts reported that activity expanded at a modest pace, the Fed noted in its latest survey report, also known as the Beige Book, reported Xinhua.

Most areas reported expansion in consumer spending, although retail sales slowed in several districts. Automobile sales were strong or solid in most districts, and tourism strengthened in a number of regions, said the central bank.

The demand for services was generally positive across the nation, most notably for technology and logistics firms. Price pressures "remained modest", with the exception of increases in prices for certain raw materials and slightly higher retail prices in several districts, noted the report.

"Labour market conditions generally improved, although several districts reported restrained hiring," said the Fed.

The Beige Book was based on economic information supplied by the Fed's 12 regional banks and was released eight times a year to provide a snapshot of the local economy.

IANS