U.S. economic recovery continues to expand: Fed

WASHINGTON, March 2 (Xinhua) -- The U.S. economy continued to expand at a relatively positive pace in the period from January through mid-February, according to the latest Federal Reserve survey released on Wednesday.

The snapshot of economic conditions found that most of the 12 Fed districts noted that the overall economic activity continued to expand "at a modest to moderate pace."

The survey, known as the Beige Book, was based on economic information supplied by the Fed's 12 regional banks and collected during the reporting period from January to February 18.

The U.S. central bank reported that conditions were generally said to be better in Districts' retail, manufacturing, and nonfinancial services sectors than in financial services or real estate.

The report also found that consumer spending, which accounts about 70 percent of the overall economy, "strengthened compared with a year ago across all Districts," where sales were reported to have softened modestly."

Activity of nonfinancial services increased across the country. But housing market remained depressed, with "overall sales and construction remained at low levels across all Districts."

The survey found that prices pressure increased with " manufacturing and retail contacts across Districts reported rising input costs," but "there is little evidence of wage pressures."

The Fed noted that "labor markets modestly improved across the country," allowing manufacturers "greater ability to pass through higher input costs to customers."

The Fed has been keeping its federal funds rates at the historic low level of zero to 0.5 percent since December 2008. And the central bank announced last November that it would buy an additional 600 billion dollars in Treasury bonds over the next eight months to help lower interest rates and spur the economy.

The Beige Book report will be used at the next meeting of the central bank's Federal Open Market Committee on March 15.

Many economists expect that the Fed will stick to its government bond buying program which is scheduled to concluded until June.

source:Xinhua