Fed Report Paints Picture of Slowing Economy

Washington, DC, Sept. 9, 2010--The economy is continuing to expand, but more slowly than earlier this year, according to the Federal Reserve's so-called "beige book," a summary of economic conditions that was released Wednesday.

"Economic growth at a modest pace was the most common characterization of overall conditions," the report summarized, "but with widespread signs of a deceleration compared with preceding periods."

The beige book also highlighted that growth was a little stronger than average in the Boston and Cleveland districts, while all five of the Federal Reserve's western districts reported modest growth.

Consumers also spent more this summer, especially for necessities and lower-priced goods. Sales of big-ticket items were weak, according to three districts. But sales of new cars and light trucks were stable or increasing.