Economic growth held steady across the United States from July through late August, as Americans bought more cars and homes and auto factories added workers, a Federal Reserve (Fed) survey released Wednesday showed. The survey, known as the beige book, showed that all 12 of the Fed's regional banking districts reported modest to moderate growth. That is roughly in line with the central bank's previous survey of those districts from late May through early July. Attractive financing options helped boost demand for new cars and trucks in most districts, with many reporting robust sales. The survey said that job growth was steady and that hiring in manufacturing improved modestly, especially at auto and auto-parts factories. But the Kansas City and San Francisco districts said that federal spending cuts had caused production cutbacks at some defense plants. The overall economy grew at an annual rate of 2.5 percent in the April to June quarter. Many analysts believe that growth in the July to September quarter will be around 2 percent to 2.5 percent. Some economists believe the economy is strong enough for the Fed to begin slowing its bond purchases at the September meeting. Others say the Fed may hold off at that meeting because they want to see more data. The $85 billion a month in purchases of Treasury and mortgage bonds have kept long-term interest rates low, encouraging more borrowing and spending.
