The US economy continued to recover in recent months, according to the latest report from the Federal Reserve. "Reports from Districts suggest that the nation's economy has continued to improve since the last survey," the Fed said in its "Beige Book", a snapshot of economic conditions. But the book noted that growth across the US remains uneven. Most districts gave "quite favourable" reports, but some reported only "slow or modest growth".
Many districts saw "modest improvements" in labour markets, but the Fed noted that overall, the US labour market remained slack. Non-farm payroll figures last week showed that US companies shed a net 1,000 jobs in December, well below expectations that they would create 150,000 jobs. Wage pressures remained "subdued", the book noted, which is helping to keep inflation in check. Almost all districts reported increases in manufacturing activity, and several districts noted that factory employment had begun to edge up as well. "Manufacturers generally expect factory conditions to continue to improve in the months ahead, and several districts noted that capital spending in 2004 will be somewhat higher than in 2003," the Fed added. //www.fxcentre.com