WASHINGTON – A Federal Reserve survey released Wednesday found that the U.S. economy held steady during the 16-day partial government shutdown, growing moderately in most regions from October through late November.
The Fed said seven of its 12 banking districts, including Minneapolis, described growth as moderate. Four — Philadelphia, Chicago, Kansas City and San Francisco — said growth was modest. Boston said its regional economy continued to expand.
Manufacturing strengthened in most districts, helped by more production of cars, trucks and high-tech products. Consumers boosted spending in most regions, and retailers were hopeful yet cautious about the holiday shopping season. Hiring improved in five of the districts; the other seven reported little change.
The Beige Book survey, as it is known, is based on anecdotal reports from businesses and will be considered along with other data when the Fed meets next on Dec. 17-18.
Many economists believe the Fed will make no changes to its interest rate policies at that meeting. They expect the Fed will continue to buy $85 billion a month in bonds, which are intended to encourage more borrowing and spending.
But some analysts think the central bank could start to reduce those purchases in December, especially if Friday's report on November employment shows another strong month of hiring.
Hiring has accelerated in recent months. The economy has added an average of 202,000 jobs a month from August through October, up from an average of 146,000 from May through June.
The economy expanded at a 2.8 percent annual rate in the July-September quarter. But analysts expect growth to slow.
The Beige Book report noted that businesses saw mostly temporary impacts from the 16-day government shutdown in October. Some companies in Cleveland and Chicago reported heightened levels of uncertainty due to continued debate over the federal budget. And tourist destinations in the Boston, Richmond and Minneapolis districts reported lower traffic during that time.
