The Talk Show American

THE TALK SHOW AMERICAN: U.S. Economic Activity Continues to Expand

Thursday, January 19, 2006

U.S. Economic Activity Continues to Expand

The economy chugged ahead as the new year opened with manufacturing picking up, employment improving and retail sales rising, the Federal Reserve reported Wednesday.

The housing market, however, showed fresh signs of cooling but still was in good shape, the Fed said in its latest snapshot of business activity nationwide.

The survey, based on information collected before Jan. 9 and supplied by the 12 regional Federal Reserve banks, will figure into discussions at Fed policymakers' next meeting Jan. 31. Economists expect the Fed will bump up rates by another quarter point in its continuing efforts to keep the economy and inflation on an even keel.

On the factory front, "increases in manufacturing activity were widely reported across the country," the report said. Only the St. Louis Fed region characterized industrial activity as mixed.

Turning to labor market conditions nationwide, most Fed regions reported signs of "continued, if generally moderate, increases in employment." The Fed districts of New York, Atlanta, Kansas City and Dallas reported evidence of stronger employment growth.

In terms of retailing, all the Fed regions - except for Cleveland - reported that their merchants saw sales rise during the holiday season. In Cleveland, however, sales were generally flat or less than at the same time a year ago.

Automobile sales, meanwhile, were "generally somewhat sluggish across the nation," the report said.

Travel and tourism remained robust across most of the country.

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