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By Jason Lange
WASHINGTON, Sept. 4 (Reuters) – The US economy has experienced moderate growth in recent weeks. The manufacturing sector was shaken by a global slowdown as consumer purchases gave mixed signals on the strength of household spending, the Federal Reserve reported on Wednesday.
The ongoing trade war between the United States and China occupied a prominent place in the latest collection of anecdotes published by the US central bank in the beige book in the United States, with several of its districts reporting that the conflict weighed on business.
The report, released ahead of the Fed's September 17-18 meeting, as central bankers are expected to lower interest rates significantly to counter the economic slowdown, suggests that US companies are not expecting a recession soon .
"While worries about pricing and trade policy uncertainty have continued, the majority of companies remained optimistic about the near-term outlook," according to the Fed's report.
The central bank said that job growth appeared to be "modest" in recent weeks, a pace "comparable to that of the previous reference period".
But manufacturing activity was slightly weaker than in the previous period, the Fed said.
The report detailed a host of corporate concerns regarding tariffs, including the possibility that uncertainty about the direction of trade policy may constrain investment.
In the Boston District of the Fed, which includes much of New England, "tariffs remain a minor but persistent price issue for manufacturers."
Trade disputes in America are also adding to the problems farmers face, the report said.
"Agricultural conditions have remained weak due to adverse weather conditions, low commodity prices and trade-related uncertainties," the report said.
The central bank's trading contacts have mainly signaled continued growth in consumer spending, the main driver of US economic growth, which has emerged strong in recent months despite the global slowdown.
But some parts of the country seem to be less robust.
In the district of St. Louis, which covers part of the Midwest and South, "reports from general retailers and auto dealers indicate that consumer activity has been mixed since our previous report" . The Minneapolis District reported that consumer spending was stable, while the Atlanta District noted that growth in consumer loans had declined.
The beige book was written by the Atlanta Fed from reports collected by the 12 regional banks of the Fed until August 23.
(Report by Jason Lange edited by Paul Simao)
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