Hiring, factory activity gave economy some spark

USA TODAY, July, 2007 by Sue Kirchhoff and David J. Lynch

WASHINGTON -- The economy expanded moderately from June through mid-July, as consumer spending hit headwinds from high gasoline and food prices and a slow housing market, the Federal Reserve said Wednesday. In the beige book, an anecdotal look at the economy named for the color of its cover, five of the 12 regional Fed banks called sales of housing-related goods "weak or declining." Hiring and factory activity were bright spots. USA TODAY's Sue Kirchhoff and David J. Lynch looked at the report.

1st District: Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, most of Connecticut. Activity was varied. Manufacturers and retailers cited "mixed" results. Consulting and advertising firms saw strong demand. Retailers said men's clothing sold well, women's didn't. Most retailers faced energy-related price pressures, and several passed along small price increases, saying they expect dairy, beef, chicken and other food prices to rise. Manufacturers described sales and orders ...