Fed survey finds US economy growing moderately, helped by consumer spending and tourism - InfoNews

Current Conditions


Fed survey finds US economy growing moderately, helped by consumer spending and tourism

In this Jan. 12, 2015 photo, construction continues on a commercial property in Peabody, Mass. The Federal Reserve releases its latest ‘Beige Book’ survey of economic conditions on Wednesday, Jan. 14, 2015. (AP Photo/Elise Amendola, File)
January 14, 2015 - 11:52 AM

WASHINGTON - The U.S. economy was growing at a moderate pace in December and early January, helped by gains in sales of autos and other consumer products, increased factory production and a pickup in tourism in various parts of the country, the Federal Reserve reported Wednesday.

The Fed said business contacts in its 12 regional banking districts were seeing "modest" or "moderate" growth. General merchandise retailers in the New York area reported largely sluggish holiday sales while high-end merchandise in Philadelphia and San Francisco did well.

Payrolls grew in a variety of sectors but significant wage gains were seen only by workers with specialized technical skills.

The Fed report, known as the beige book for the colour of its cover, will form the basis of discussion at the Fed's next meeting on Jan. 27-28. The Fed at its last meeting in December said it expected to remain "patient" as it decides when to begin raising interest rates.

Many economists say the country's moderate growth will allow the Fed to stay patient through the first half of this year with June the most likely date for the first increase in its benchmark rate, which has been at a record low near zero for the past six years.

In the new report, based on interviews with business contacts around the country, the Fed did find early indications that the recent sharp slide in oil prices was starting to have an impact on the economy.

The Dallas Fed said that some energy firms in its district were reporting hiring freezes and layoffs. The Atlanta Fed said that the lower gas prices had boosted the sales of larger vehicles but the St. Louis Fed said that some auto dealers in its region were seeing excess inventories of luxury cars.

Various tourism contacts reported a brisk business with Broadway theatres in New York City saying that attendance and revenues were 10 per cent higher than a year ago. Tourism was also reported up in the Richmond and Kansas City regions but ski resorts in the Philadelphia Fed district were struggling to attract visitors in the midst of unseasonably warm weather in December and the warm weather was also having an impact on winter tourists in the Minneapolis region.

News from © The Associated Press, 2015
The Associated Press

  • Popular kelowna News
  • Comments
  • RCMP make arrest for 2019 killing of homeless Kelowna teen
    An 18-year-old woman has been arrested for the 2019 killing of Elijah Beauregard. Beauregard was fatally stabbed in downtown Kelowna June 27, 2019, and on Feb. 21,  an unnamed woman was
  • Major delays on Coquihalla, Drive BC issues warning
    Conditions on the Coquihalla, near the Great Bear snowshed, have been pretty intense for motorists, prompting DriveBC to issue a warning. #BCHwy5 - A look at the situation moments ago
  • UPDATE: Highway 1 open after major accident
    After a major vehicle accident closed Highway 1 between Revelstoke and Sicamous this morning, the road has been reopened. According to Drive BC, the incident occurred around 9 a.m. at Three
  • Snowstorm to hit Coquihalla, valley bottom
    Snow is expected to fall across the Southern Interior today but the biggest weather change will be on mountain passes, which could see quite a significant accumulation of snow. A snowfall wa
  • New mountain highway proposed between Red Deer and Kamloops
    An Alberta development group is pitching the idea of a new highway linking central Alberta to B.C. cutting through the mountains and a section of Banff National Park. The Central Alberta Eco
View Site in: Desktop | Mobile