Beige Book Reads Like Goldilocks

U.S. economic activity continued to expand, generally speaking, between late August and early October, the Federal Reserve said Thursday in its regional survey known as the beige book.

The report, published eight times a year, summarizes business activity in the Fed's 12 districts. Four districts reported that economic growth firmed, while a couple said activity cooled. Other reports generally characterized growth as moderate or mixed.

Consumer spending increased more quickly in a number of districts, although several reports continued to say that home-related and automobile sales were sluggish, particularly for domestic cars, SUVs and light trucks. However, some areas reported increased sales of foreign cars and fuel-efficient vehicles.

Tourism was strong, and activity in the service sector expanded in most districts. Most districts reported stronger growth in consumer spending. Solid back-to-school sales helped boost retail revenue in the Philadelphia, Atlanta and Minneapolis districts. Chicago said back-to-school sales were within expectations.

Manufacturing conditions held up well for the most part. Eight of the 12 districts indicated that factory output increased, but Chicago and Kansas City said the pace of expansion slowed.

At the same time, commercial construction gained strength in most of the country. Reports on residential real estate, however, indicated widespread cooling in most districts. Most areas reported higher home inventories, and several said homebuilders and sellers continued to offer incentives to attract buyers.