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| Official seal of City of Grosse Pointe (Photo credit: Wikipedia) |
Washington, Jan.17, stock tips .- The economy expanded at either a modest or moderate pace across the country into early January, as spending and hiring were held down by concerns over fiscal policy, according to the latest Federal Reserve Beige Book survey released Wednesday.
Concerns about tax and spending policies also impacted housing in at least one region, the survey found.
Manufacturing activity was mixed, with three of the 12 Fed regions reported a decline in factory output.
The labor market, a key focus of Fed officials, was seen as mostly unchanged.
Several districts reported delayed hiring, often in defense manufacturing, due to fiscal cliff uncertainties.
Congress and the White House reached a deal on taxes to avert the fiscal cliff late in December, though concerns over the debt ceiling and spending still remain.
The Fed survey, essentially a collection of anecdotes from the Fed’s business contacts across the country, covered conditions through Jan. 4. It was prepared by the Federal Reserve Bank of Philadelphia.
Fed officials will meet on Jan. 29-30 to set monetary policy for the next six weeks.
The Fed has launched an aggressive new $85 billion a-month bond buying program to try to lower long-term interest rates and spark activity.
In speeches this month, Fed officials generally believe growth will be sluggish this year, but express optimism that the economy should strengthen in 2014 and 2015.
Reuters Unsold vehicles are seen sitting on the lot of a Chrysler dealership in Grosse Pointe, Michigan April 2, 2009.
Housing continued to be a bright spot. Existing home sales picked up in all but one of the Fed’s dozen regions with interest rates low.
Energy was another star, with high levels of production reported across the country.
While consumer spending did grow during December, holiday sales were below expectations in many of the Fed regions.
“Citing concerns that consumers will spend cautiously due to ongoing fiscal uncertainty, retail contacts and auto dealers reported a slightly dimmer, though positive, outlook for future sales,” the Beige Book found. ... Continue to read.
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