The U.S. economy saw a slower pace of economic growth in the past few weeks amid a “depressed” real-estate market and “soft” consumer spending, the Federal Reserve (Fed) said in a report released Wednesday. The report, to be used by the central bank at its December 11 policy meeting, said the U.S. economy “continued to expand during the survey period of October through mid-November but at a reduced pace compared with the previous survey period.” The Fed suggested that the strains from a severe housing slump and a difficult tightening of credit are affecting the behavior of both individuals and businesses. “Reports on retail spending were downbeat in general,” the survey said. “Most retailers said that they were expecting a slow holiday season, with only small gains in sales volumes compared with last year.” Among the 12 Fed districts, “seven reported a slower pace of economic activity, while the remainder generally pointed to modest expansion or mixed conditions,” the report said. The main pressure on the economy was the housing market, the survey said. “Demand for residential real estate remained quite depressed, with only a few tentative and scattered signs of stabilization amidst the ongoing slowdown,” it said.
