(MENAFN - Kuwait News Agency (KUNA)) U.S. economic activity expanded at a "measured pace" recently but there remains to be "concern and uncertainty" about the federal budget, especially the fiscal cliff, according to a Federal Reserve report issued Wednesday.
The Federal Reserve's Beige Book indicated that according to reports from contacts in the twelve Federal Reserve Districts, economic activity "expanded at a measured pace in recent weeks." It stressed that "contacts in a number of Districts expressed concern and uncertainty about the federal budget, especially the fiscal cliff." According to the report, among key sectors, consumer spending grew at a "moderate pace" in most Districts, while manufacturing "weakened, on balance."
Employment increased in more than half of the twelve Districts, whereas wage growth was described as "modest at best, constrained in part by an abundant labor supply." The report showed that "manufacturing contacts from five of the twelve Districts expressed concern about the outlook for 2013, in part, due to the uncertainty regarding the outcome of the fiscal cliff."