The U.S. economy continued to expand at a modest pace despite problems in the energy and manufacturing sectors, according to the Federal Reserve’s Beige Book.
The Beige Book, a collection of anecdotal reports from the Fed’s 12 district, revealed that consumers remained in a relatively upbeat mood amid low gas prices.
Economic activity has expanded in nine of the districts since the previous Beige Book report and contacts in Boston were described as upbeat.
Meanwhile, New York and Kansas City described economic activity in their Districts as essentially flat.
With the exception of motor vehicles and aerospace, most manufacturing sectors displayed a weakening in activity.
The energy sector has also been hit hard, due in large part to collapsing oil prices.
Still, labor markets continued to improve.
The Fed is expected to take this Beige Book into consideration when making its next policy decision later in January.
In December the Fed hiked interest rates for the first time in more than a decade. Policy makers will likely refrain from another rate hike until later in the year.
The material has been provided by InstaForex Company – www.instaforex.com