The US economy is growing slowly but there is little sign of a slide into recession, according to the latest reports from the Federal Reserve’s business contacts around the country.
All 12 regional Fed districts reported continued growth in the latest Beige Book, although all said that the rate of increase is modest, and several said that conditions were “mixed” or noted that expansion is slowing down.
The report suggests that the shock from August’s contentious debt ceiling debate and the downgrade to the US credit rating hit economic activity but has not turned into a downward spiral of falling confidence and weaker growth.
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