The strong dollar weighed on manufacturing and tourism spending in the US
Washington - AFP
The strong dollar weighed on manufacturing and tourism spending in the US while the economy continued "modest" expansion in recent weeks, the Federal Reserve said in a report Wednesday.
Eleven of the central bank's 12 districts reported growth, according to the Beige Book survey of recent economic conditions.
One district hit hard by the fall in oil prices, the Kansas City Fed, reported a slight dip in economic activity.
The Beige Book, covering the economy from mid-August through early October, said that a number of districts had pointed to the "strong dollar as restraining manufacturing activity as well as tourism spending."
However, consumer spending grew moderately, led by stronger gains in auto sales and services activity, which accounts for most of US output, mostly strengthened.
The housing market, which has been a bright spot in the economy, improved.
Overall, the report was upbeat about the economy. "Business contacts across the nation were generally optimistic about the near-term outlook," the Beige Book said.
The report will be used as a basis for discussion in the Fed's monetary policy meeting on October 27-28.