2005-01-19 19:43:3 WASHINGTON (AFX) -- The U.S. economy continued on a steady growth path in December and early January, the Federal Reserve said in its Beige Book report on the economy. Eleven of the 12 U.S. regions showed stronger economic growth, with only the Cleveland region lagging behind. This is the same economic picture observed in the last Beige Book report issued in early December. Reports from thousands of contacts in the 12 Federal Reserve districts found consumer spending was higher in the past month, and many districts said Christmas-related sales rose above year-ago levels. "While the pace of spending was sluggish in a number of districts at the beginning of the period, it picked up appreciably by late December," the report found
Adding to the strength of demand was an increase in tourism in several districts
The New York Fed reported that Broadway theaters set a box-office record during the last week of the year. Similarly, the Richmond Fed said that unseasonably warm temperatures led many vacationers to coastal resorts and that some hotels were turning away tourists during the week after Christmas
The report also found that manufacturing activity strengthened in nine of the 12 districts
Labor markets improved in the period, but wage pressures remained modest
The Fed said that price inflation remained "relatively steady in recent weeks," although several districts reported higher prices for building materials and manufacturing inputs
The Beige Book was written by Richmond Fed staff economists to guide Fed policymakers when the Federal Open Market Committee meets on Feb. 1 and 2. The FOMC is widely expected to continue the pattern of raising interest rates at what it's called "measured" pace, which would bring the federal funds rate to 2.50 percent.