Fed's Beige Book documents recovery stall

In the most recent of eight annual Beige Book reports, the nation's 12 Reserve Bank districts reported "continued growth in national economic activity … but with widespread signs of a deceleration compared with preceding periods."

The Fed said five western districts, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco, showed "economic growth at a modest pace." Boston and Cleveland also reported some growth, while eastern districts, New York, Philadelphia, Richmond, Atlanta and Chicago reported "mixed conditions or deceleration."

The Fed said manufacturing continued to grow, albeit at a slower pace than in recent reports and consumer spending "appeared to increase on balance despite continued consumer caution."

Home sales slowed, however, "prompting" a continued decline in the construction sector.

With unemployment at 9.6 percent, "wage pressures … were limited," the central bank said. Inflation pressure, at the same time, was "quite limited for most categories of goods and services, despite higher prices for selected commodities."

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