More U.S. regions report slower growth: Fed

The Federal Reserve says more regions in the United States are reporting slower growth as a result of the U.S. economy losing momentum in the late summer.

Although the economy was still growing in late summer, the Fed says there were “widespread signs of deceleration.”

The latest Beige Book survey by the Fed says economic activity was mixed or slower in five of the 12 regions it tracks.

It identified those regions as New York, Philadelphia, Richmond, Atlanta and Chicago.

Activity elsewhere was described as modest or pointed to positive developments.

In the Fed’s previous survey in late July, only two regions — Atlanta and Chicago — reported slower growth.

Despite the pessimistic view of the Fed, there remain some promising signs of recovery in key areas of the economy, according to Alistair Bentley, an economist with TD Bank Financial Group.

“Credit supply and demand were broadly unchanged, but this reflects a stabilizing in conditions. Manufacturing activity is still expanding, continuing to act as a source of growth. Consumer spending continues to grow, at a tepid pace,” Bentley wrote in a research note. “We believe that these trends will continue into the future and provide the backdrop for sustained positive, albeit below trend, economic growth.”

(09/08/10)