Washington, Oct. 11 (ANI): The U.S. economy has expanded 'modestly' in the past six weeks due to a stronger housing market, according to a closely watched survey by the US Federal Reserve.
The Fed's Beige Book suggested that 'widespread improvement' in the housing market helped to mask largely flat consumer spending.
It also said that hiring conditions were also little changed from August.
According to the BBC, the central bank said that existing home sales strengthened in all 12 districts surveyed, while new home construction and sales 'mostly improved'.
It said that consumer spending, which accounts for about 70 percent of US economic output, was 'flat to up slightly'.
Sales were undermined by rising petrol prices, political uncertainty in the run-up to the US election in November, and concerns about the so-called fiscal cliff, when automatic spending cuts and tax increases kick in at the beginning of next year, the report said.
The report also suggested that manufacturing activity was mixed, although more districts reported that conditions had improved rather than worsened.
The Beige Book also said that employment conditions were 'little changed' from its last report at the end of August.
Last week, figures showed a surprise fall in the U.S. unemployment rate to 7.8 percent in September from 8.1 percent in August. The U.S. economy added 114,000 jobs during the month. (ANI)
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