The final weeks of 2011 were the U.S. economy's best since it seemed to be slipping toward recession in late spring - a shot of optimism for 2012, AP reported. Consumers spent more freely. Factories made more goods. Americans stepped up travel. And the auto industry enjoyed its best stretch of the year. That's the bright picture the Federal Reserve sketched in a survey released Wednesday. It said all but one of its 12 banking districts experienced some growth from late November through the end of the year. The one exception was Richmond. Even in that district, the Fed said economic activity either "flattened or improved slightly." The Fed said that some sectors of the economy, notably housing, remain weak. But overall, the message was encouraging. It comes just six months after the economy nearly stalled under the weight of high food and gas prices and supply disruptions from Japan that slowed U.S. manufacturing. The economy and the job market have both improved since then. And December may end up being the strongest month of 2011. Employers added 200,000 jobs. And the unemployment rate fell to 8.5 percent - the lowest rate in nearly three years. "The Fed's report Wednesday confirms what everyone else has been seeing in the economic data from retail sales to auto sales and manufacturing - activity is improving," said Jennifer Lee, senior economist at BMO Capital Markets. Most of the Fed's districts reported holiday sales increased over last year. In particular, the New York and Dallas districted reported healthy gains. Boston, New York and Minneapolis reported exceptional growth in online sales. Inflation remained subdued, largely because high energy prices have eased. That may change in the new year. Oil has climbed above $100 a barrel again, and gas prices are creeping up. The strength shown in the Fed survey reflected other positive economic reports. Consumer confidence hit its highest point since spring. U.S. automakers reported their two best months of sales for 2011 in November and December. And U.S. factories ended the year with their best month of growth since spring. The Fed's next meeting is Jan. 24 and 25.
