Fed: Economy still growing moderately

Businesses across the country continue to have a steady sense of optimism about the economy, according to a new report from the Federal Reserve.

The Fed reported in its latest “beige book” that business contacts across the country generally expected “modest to moderate” economic growth in the U.S.

{mosads}The new edition largely hews to what the Fed has seen in the U.S. economy for the last several months — that it continues to grow, but not especially quickly. But that tepid optimism comes at a time of extreme market turmoil, as the Dow Jones Industrial Average shaved off hundreds of points Wednesday amid global concerns, and now is in negative territory for the year.

The beige book is a collection of anecdotal takes from business contacts spread across the country’s 12 Federal Reserve Districts.

In the beginning of the fall, those contacts reported that they expect job growth to continue at roughly the same relatively strong pace of the last several months, along with slight to moderate gains in consumer spending.

But there does not appear to be any significant relief in sight for many Americans who are not feeling any advantages of the recovered economy, as contacts also said they see few examples of pressure to hike wages, which have not grown significantly since the recession.

Most districts also reported mixed activity on the real estate front, as commercial construction were up in most areas, but the demand for consumer loans were more mixed.