Strength in consumer spending, especially for autos, is powering a “slow to moderate” economic recovery across much of the nation, the Federal Reserve said Wednesday.
The central bank said reports from business executives were mixed in New York and California, but elsewhere the economic signs were more positive.
“Consumer spending rose in a majority of districts, with particular strength noted in sales of autos and other durables,” big ticket items expected to last three or more years, the Fed said in its latest “beige book” report.
Based on surveys of business executives before Oct. 26 by the Fed’s 12 regional banks, the report will be used by monetary policymakers at their next meeting on Nov. 16.
In addition to auto sales, the central bank mentioned housing as a bright spot and said the long-moribund commercial real estate market was experiencing “some pickup.”
Crop damage continues to be reported from flooding in the Midwest and drought in the South, but reports from livestock producers were favorable.
The Chicago Fed said that in the Midwest, gains have been modest, with retail sales and housing activity continuing to grow. Employment levels have been bolstered by recent industrial activity.
