The U.S. economic recovery is spreading to more parts of the country but has not yet created new jobs, the government reported Wednesday. A survey by the Federal Reserve (Fed) emphasized that even as the economy grows and the recovery extends geographically, more than 15 million Americans remain unemployed. Specifically, economic growth was modest, but to lower the unemployment rate, the economy needs to grow more strongly. While "economic activity remains at a low level, conditions have improved modestly further," the Fed said in its Beige Book report, named for the color of its cover. However, the central bank also noted that "labor-market conditions remained soft" in most of the 12 Fed regions. Ten of the central bank"s 12 regions reported "increased activity or improvement in conditions," while the remaining two, on the east coast, described economic conditions as mixed. In the Fed"s last report, eight districts showed increased activity and four were little changed. Most districts reported consumer spending during the holiday season "slightly greater than in 2008, but still far below 2007 levels." Manufacturing activity "has increased or held steady since the last report in most districts," and home sales increased in most areas, especially for lower-priced homes, with price little changed, the survey said.
