U.S. Economy Is Continuing to Give Indications of a Slowdown

The economy grew solidly in the late summer, but there were additional signs that the breakneck pace of earlier months was slowing, the Federal Reserve said Wednesday.

The Fed’s latest survey of business activity around the country, based on reports from its 12 regional banks, said home sales and construction activity, which have been engines of the vibrant economy, continued to soften in August and early September.

Consumer spending, which accounts for two-thirds of all economic activity and has been the biggest driver of robust growth, “was flat to modestly higher” in August compared with late spring and early summer, the survey said.

Fed policymakers will use the survey when they meet Oct. 3 to review their stance on interest rates.

The survey, known as the “beige book” for the color of its cover, is based on information collected before Sept. 11.

Many economists believe the economy has slowed in the current third quarter to a growth rate of around 3.5% to 4%, compared with the vigorous 5.3% rate posted in the second quarter.