US economy still growing

The US economy has continued to grow in most parts of the country since early September, says the Federal Reserve's latest Beige Book survey.
Its report helped the Dow Jones hit yet another record close - its fifth in two weeks - ending up 96 points to 11,948.

The Fed's study of economic conditions in 12 regions across the US said four areas had seen strong growth, and six had seen moderate or mixed expansion.

Only two districts reported that growth had cooled - Philadelphia and Dallas.

Most regions reported stronger consumer spending, but they also said there were some inflationary pressures.

In September, the Fed kept interest rates on hold at 5.25% for a second successive month, in the face of signs that US economic growth was slowing down.

While the latest Beige Book report is upbeat on economic growth but cautious on inflation, official figures earlier this week showed that US producer prices rose by just 0.1% in September, and the level of housing construction was down 6%.

Data has also shown varied retail sales.

"The read on it [the Beige Book] is that it is fairly benign and the markets have responded positively," said Michael Panzner, a trader with Collins Stewart in New York.