More areas in U.S. report slower growth

A latest survey released by the U.S. Federal Reserve on Wednesday revealed that economic activity in more regions of the United States slowed pace in the late summer.

The survey, known as the Beige Book, was based on economic information supplied by the Fed's 12 regional banks and collected during the reporting period of mid-July through the end of August.

The U.S. central bank reported "continued growth" in national economic activity, but with "widespread signs of a deceleration" compared with preceding periods.

The snapshot of economic conditions showed that five districts reported "modest pace" of economic growth, namely St. Louis, Minneapolis, Kansas City, Dallas and San Francisco.

This represented a less positive view on the economy compared with that of the last survey released on July 28, which reported " improved" economic activity in 10 districts.

Consumer spending appeared to increase despite continued consumer caution that limited nonessential purchases. Activity was largely stable or up slightly for professional and other nonfinancial services, according to the report.

"Manufacturing activity pointed to further expansion, although the growth pace eased. Home sales slowed further following an initial drop after the expiration of the homebuyer tax credit at the end of June, causing a downturn in construction activity as well," said the central bank.

The report revealed that upward price pressure remained limited for most categories of final goods and services, while wage pressures were also limited.

U.S. economic expansion lost momentum and dropped to an annual rate of 1.6 percent in the second quarter of this year, the slowest quarterly gain since the U.S. economic activities began to pick up in the second half of last year.

Source: Xinhua