Fed survey detects economic growth across the country

WASHINGTON – For the first time since the beginning of the recession, economic growth – modest and fragile, but growth nonetheless – has spread to every corner of the country.

A survey released Wednesday found economic activity was improving across all 12 regions of the nation tracked by the Federal Reserve. It was the first clean sweep in the report since 2007.

Metal producers in Chicago and St. Louis cranked out more steel. Makers of drugs and medical equipment in the Northeast did better business. And sales of summer clothes were strong in New York.

Still, the pace of growth in most parts of the country was described as modest. That’s a sign that companies probably won’t start hiring again anytime soon in great enough numbers to bring down the unemployment rate.

Fed chief Ben Bernanke sounded a similar note in testimony Wednesday before Congress, telling lawmakers that the economy will probably plod ahead in the coming months.

Bernanke said the debt crisis in Europe was unlikely to seriously harm the American recovery as long as Wall Street stabilizes. He also predicted only a slow reduction in the unemployment rate, which stands at 9.7 percent.

The Fed’ssurvey, known as the Beige Book, provides a snapshot of the nation from what you might think of as the economic trenches. The central bank’s 12 regional arms have their people fan out to gather information from businesses and experts on the markets. At the low point of the recession, all 12 regions reported shrinking economic activity.

This time, the survey found manufacturing was picking up, retail sales and housing were growing, and tourism was improving. Housing was helped by a tax credit for homebuyers that expired in April.

Commercial real estate was weak. And while shoppers spent more freely, they stayed focused on the necessities, not big-ticket buys.