US economy improved in recent months: Federal Reserve

WASHINGTON: In signs that the country's growth is on track, the economic activity across the country improved in recent months, according to the US Federal Reserve.

The Federal Reserve has said, "the overall economic activity increased somewhat" in the past few months, paced by better retail sales and improved manufacturing sector.

In its latest 'Beige Book' released yesterday-- which provides a snapshot of economic activity in the 12 federal reserve districts --the Fed noted that generally there was an increase in retail sales and vehicle sales.

"Manufacturing activity increased in all federal reserve districts except St Louis, and new orders were up. Many districts saw increased activity in housing markets from low levels," it said.

After being battered by the financial meltdown, the US economy is now growing at a healthy rate and expanded 5.6 per cent in the last three months of 2009. The labour market, however, continued to remain weak even though many district witnessed an uptick in hiring due to recruitment of temporary staff.

Despite the economy growing, the national unemployment rate is still higher than 9 per cent. "While labour markets generally remained weak, some hiring activity was evident, particularly for temporary staff. Wage pressures are characterised as minimal or contained," the Beige Book said.

On Wednesday, Federal Reserve chairman Ben S Bernanke said significant restraints continue to remain on the path of economic recovery.