The U.S. economy expanded at a moderate pace from September into October, the Federal Reserve's Beige Book released on Wednesday revealed.
"Reports from the twelve Federal Reserve Districts suggest that national economic activity continued to expand at a modest to moderate pace during the reporting period of September through early October," the document read.
"Eight Districts reported similar growth rates in economic activity as during the previous reporting period, while growth slowed some in the Philadelphia, Richmond, Chicago, and Kansas City Districts," the Beige Book added.
Real estate and auto sales generated growth during the period, the Beige Book added, while consumer spending and expanding payrolls also contributed to growth as did the travel and tourism sectors.
Fiscal uncertainty dampened spirits, however.
Democratic and Republican Senators earlier Wednesday agreed on terms to fund the government and allow the Treasury to continue borrowing through early 2014, though fears the fiscal impasse would have thrown the country into default created uncertainty in recent weeks, monetary authorities pointed out.
"Contacts across Districts generally remained cautiously optimistic in their outlook for future economic activity, although many also noted an increase in uncertainty due largely to the federal government shutdown and debt ceiling debate," the Beige Book read.
U.S. credit ratings agency Fitch Ratings on Tuesday placed the U.S. 'AAA' debt on "rating watch negative" due to congressional inability to pass a spending package, which closed the government on Oct. 1 and brought the country dangerously close to default.
The budget deal will reportedly give the Treasury the authority to continue borrowing through Feb. 7 and fund the government through Jan. 15, but will also add in spending cuts, which appeased Republicans.
The U.S. is due to hit its debt ceiling on Thursday, after which Washington won't be able to guarantee all of its obligations.
The House of Representatives must vote on the Senate spending bill, though hopes were high in mid-session trading on Wednesday that the deal will go through.
"Reports from the twelve Federal Reserve Districts suggest that national economic activity continued to expand at a modest to moderate pace during the reporting period of September through early October," the document read.
"Eight Districts reported similar growth rates in economic activity as during the previous reporting period, while growth slowed some in the Philadelphia, Richmond, Chicago, and Kansas City Districts," the Beige Book added.
Real estate and auto sales generated growth during the period, the Beige Book added, while consumer spending and expanding payrolls also contributed to growth as did the travel and tourism sectors.
Fiscal uncertainty dampened spirits, however.
Democratic and Republican Senators earlier Wednesday agreed on terms to fund the government and allow the Treasury to continue borrowing through early 2014, though fears the fiscal impasse would have thrown the country into default created uncertainty in recent weeks, monetary authorities pointed out.
"Contacts across Districts generally remained cautiously optimistic in their outlook for future economic activity, although many also noted an increase in uncertainty due largely to the federal government shutdown and debt ceiling debate," the Beige Book read.
U.S. credit ratings agency Fitch Ratings on Tuesday placed the U.S. 'AAA' debt on "rating watch negative" due to congressional inability to pass a spending package, which closed the government on Oct. 1 and brought the country dangerously close to default.
The budget deal will reportedly give the Treasury the authority to continue borrowing through Feb. 7 and fund the government through Jan. 15, but will also add in spending cuts, which appeased Republicans.
The U.S. is due to hit its debt ceiling on Thursday, after which Washington won't be able to guarantee all of its obligations.
The House of Representatives must vote on the Senate spending bill, though hopes were high in mid-session trading on Wednesday that the deal will go through.