WASHINGTON — The U.S. economy grew unevenly in early fall, with more than half the regions of the country expanding modestly while others struggled to grow.
A survey by the Federal Reserve, known as the Beige Book, released Wed nesday found that seven of the Fed’s 12 regions reported moderate improvements in business activity. Three regions — Philadelphia; Richmond, Va.; and Cleveland — described economic activity as mixed or steady.
Two regions — Atlanta and Dallas — suggested economic growth was slow.
The survey indicated that the economy isn’t weakening but is growing too sluggishly to drive down high unemployment, now at 9.6 percent. The jobless rate has been at or above 9.5 percent for more than a year.
“Hiring remains limited, with many firms reluctant to add to permanent payrolls given economic softness,” the Fed survey concluded.
High unemployment is one of the Fed’s biggest concerns. That’s why Fed Chairman Ben Bernanke and his colleagues are widely expected to launch a new program at their Nov. 2-3 meeting to bolster the economy. The Fed is expected to buy Treasury bonds in a bid to drive down interest rates on mortgages, corporate loans and other debt. The hope is that cheaper credit will persuade Americans to increase spending, which would help the economy grow and lead companies to hire more workers.
