The Federal Reserve said economic growth this fall slowed in four key regions of the United States, including Kansas City, partly because of a dip in consumer spending and worries about the federal budget impasse. The Beige Book survey released Wednesday said overall growth nationwide from September through early October continued at a modest to moderate pace. Eight of the Fed’s 12 banking districts reported the same growth rate as reported in August through early September.
The Kansas City region covers seven states: the western part of Missouri, Kansas, Colorado, Nebraska, Wyoming, Oklahoma and northern New Mexico. Growth lagged in this region partly because consumers spent less on automobiles, dining out, and travel and tourism, the Fed noted. The Fed also said farm income in the Kansas City district was weaker because of falling crop prices.Despite some signs of weakness, the Fed reported that manufacturing activity picked up in the region and residential and commercial real estate sales and prices