Business conditions around the country
The U.S. economy kept expanding in October and November, helped by solid gains in consumer spending, manufacturing and overall employment, according to the Federal Reserve's latest survey of business conditions around the country.
The Fed survey found many areas of strength and for the first time this year, the report did not see a need to qualify its summary of growth by using words like "modest" and "moderate."
The Fed said that business executives remain optimistic about the prospects for growth in 2015. The gains in economic activity were coming as overall inflation remained subdued although the report did find upward wage pressures for some skilled workers.
The report, known as the Beige Book for the color of its cover, will form the basis for discussion at the Fed's final policy-making meeting of the year on Dec. 16-17.
Private economists viewed the latest report as generally upbeat about economic prospects. Jennifer Lee, senior economist at BMO Capital Markets, said she found it encouraging that there was enough activity in hiring and business investment that the Fed saw the need to add a section to the report detailing developments in these areas.
Analysts said the views on economic performance suggest the Fed will leave a key short-term interest rate at a record low for the time being. The rate has been near zero since December 2008. Many private economists believe that the economy will be growing strongly enough and unemployment will be low enough that the central bank will begin raising rates in the middle of 2015.