Fed Says Economy Expanded on Manufacturing, Spending

The Federal Reserve said holiday-season spending and increased manufacturing drove an economic expansion across the U.S. in November and December, with businesses cautiously optimistic about their 2011 outlooks.

Six Fed regions including Atlanta and Chicago showed economies growing “modestly to moderately,” and four areas including New York and Boston had “improving” conditions, the Fed said today in its anecdotal Beige Book report. The Minneapolis region “continued its moderate recovery,” and San Francisco “firmed further,” the central bank said.