Beige Book: Modest growth in the U.S. economy

With improved figures for the housing market and car sales and not least the labor market it is a U.S. economy that is showing 'modest growth'.

That is according to the trend report Beige Book, published Wednesday evening. It presents 12 districts - regional branches of the Federal Reserve - their assessment of how the economy in their field are doing, collected by the central bank, Fed.

"Consumer spending was generally reported to be flat inclined to slightly increase since the last report," the Fed Beige Book reports, while conditions in the industrial sector was "somewhat better".

The relatively modest lift in the U.S. economy, as Beige Book shows, thus is water to central bank Chairman Ben Bernanke’s mill, whose opinion is that economic growth is not strong enough to create a quick healing of the labor market.

A labor report so last week showed that while the unemployment rate unexpectedly fell in September, wages decreased at the same time.

Modest and moderate growth - no cheers
It was not exactly the same messages that came from the 12 districts, but no one had actually hands over their head in cheering roars.

Thus arises six areas of "modest growth", while three called it "moderate." Philadelphia and Richmond departments reported "slow growth" in most industries, while manufacturing sector fell. Boston district is quoted as "no recession".

The Beige Book report, which contains information collected on or before 28 September, will provide policy makers information about the economy before some of the most important government reports issued with a longer delay.

For example the Commerce Department - the Department of Commerce – is planning to come up with an estimate of third quarter growth on 26 October.