U.S. factories boosted output last month, and December ended up being their best month of growth in five years.WASHINGTON – The economy lost strength in late summer as factory production weakened in areas of the East Coast and Midwest.
A survey the Federal Reserve released Wednesday found the slower growth spreading to more regions of the country.
Of the 12 regions the Fed tracks, economic activity slowed or was mixed in five – New York, Philadelphia, Richmond, Atlanta and Chicago. Activity elsewhere was described as modest or pointed to positive developments.
In the Fed’s previous survey in late July, only two regions – Atlanta and Chicago – had reported slower growth.
In New York, retailers, especially those in New York City, said sales dropped. Factory production slowed, too. And both the housing and commercial real estate markets turned even softer.
In Chicago, a weakening in manufacturing and construction activity accounted mainly for that region’s slower economic pace. Retail sales in that region rose, however.
The overall U.S. economy was still growing in late summer, but there were “widespread signs of deceleration,” the Fed said.
The Fed is sure to keep interest rates at record lows to bolster the economy when it meets Sept. 21.
