Despite the turmoil that shook the financial markets last month, the Federal Reserve says its 12 bank regions grew this summer because consumers spent more in many parts of the country.
The Fed said five of its regions reported modest or slight growth in late July and August. Those regions included St. Louis, Minneapolis, Kansas City, Dallas and San Francisco.
The seven other regions described growth as subdued, slow or sluggish.
The survey, released Wednesday, is known as the Beige Book and offers mostly anecdotal information on economic conditions around the country. Its findings were a slight improvement from the previous survey, which said growth had slowed in eight of the 12 regions in June and early July.
Consumer spending increased in most regions from the previous survey. But the gains were mostly due to stronger auto sales. Demand for products outside of autos was flat or fell in several regions during late July and August.
The report offered little guidance about future hiring. It did note that several districts said the volatile stock market and economic uncertainty had led many businesses to lower expectations for the near future. The Dow Jones industrial average lost 2,000 points, or roughly 16 percent, from July 22 through Aug. 10.
"Although far from upbeat, the overall tone from the anecdotal evidence ... wasn't all doom and gloom," said Jennifer Lee, senior economist at BMO Capital Markets.
The regional outlook will help shape the discussion at the central bank's next meeting on Sept. 20-21.
The economy barely grew in the first half of the year, and the government said last week that employers stopped adding jobs in August.
Consumers and businesses are feeling less confident after a turbulent summer. Lawmakers fought over raising the federal borrowing limit, Standard & Poor's downgraded long-term U.S. debt, and stocks have fluctuated wildly after plunging in late-July and early August.
Manufacturing slowed in many parts of the country, including New York, Philadelphia and Richmond, the survey noted. Textile makers in Richmond said that their markets had grown weaker because of declines in consumer confidence.
Home sales slowed in many districts, although Boston, Atlanta, Minneapolis and Dallas said sales improved slightly compared to last summer's weak levels.
Some economists say the Fed must take steps to help the economy avoid another recession.
On Aug. 9, the Federal Reserve said it planned to keep interest rates very low until at least mid-2013, assuming the economy remained weak. Minutes from that meeting showed some Fed officials had pushed for more aggressive steps.
One possibility is the Fed could increase the percentage of long-term Treasury securities it keeps in its mix of holdings. That approach would have the advantage of exerting downward pressure on long-term interest rates without adding to the Fed's already record-level of securities.
Still, three regional bank presidents dissented from the Aug. 9 decision. They expressed concerns that the Fed's policies were contributing to higher inflation.
The worsening jobs outlook has also put pressure on President Barack Obama. He is expected on Thursday to introduce a $300 billion jobs package before a joint session of Congress. The plan will likely include extensions of the payroll tax cut and long-term unemployment benefits, tax incentives for businesses that hire and money for public works projects.
But the effort faces strong opposition from congressional Republicans, who say that Obama's previous stimulus program was a failure. They want deeper spending cuts to fight the government's soaring budget deficits.
Hastert Indictment: Former Speaker Reportedly Paid Individual Not To Disclose Past Sexual Abuse | Matt Vespa
Essay by Progressive Presidential Candidate Bernie Sanders: A Woman Fantasizes About Being Gang Raped | Katie Pavlich