Economy improves at modest pace: US Fed

WASHINGTON: The US economy continued to improve at a modest pace but the economic activities were hampered by snowstorms in February, the Federal Reserve has said.

The US, hit by the financial meltdown, is on recovery path and has witnessed good growth in recent quarters.

In its latest Beige Book, which offers a snapshot of economic activities in 12 districts, the Federal Reserve said that consumer spending has improved slightly in recent months.

"Reports from the twelve Federal Reserve Districts indicated that economic conditions continued to expand ... although severe snowstorms in early February held back activity in several districts.

"Nine Districts reported that economic activity improved, but in most cases increases were modest," the report noted.

Despite improving economic situation, the labour market continues to remain sluggish, with jobless rate hovering at around 10 per cent. "Although some Districts reported an uptick in hiring or a slowdown in layoffs, labour markets generally remained soft throughout the nation...," it said.

Moreover, the Beige Book noted that loan demand remained weak, and lending standards remained tight across the country.

On the other hand, manufacturing activity strengthened in most of the districts, especially in the high-tech equipment, automobile, and metal industries.