WASHINGTON (AP) - While U.S. housing and auto sales showed strength over the summer, manufacturers were feeling pressure from China's economic slowdown and the oil industry was squeezed by lower energy prices.
That's the U.S. economic picture emerging from the Federal Reserve's look at business conditions around the country. The Fed said 11 of its 12 regional banks reported the economy grew at least modestly in July through mid-August. One region - Cleveland - reported only slight growth.
The Fed report, known as the beige book, will be used for discussion when the central bank meets Sept. 16-17. The gathering will be closely watched because of the possibility it will decide to start raising interest rates from record lows near zero.
The recent stock market turbulence, triggered by worries about China's slowdown, has led some analysts to lower the odds for a Fed move in September. But other economists still believe a Fed rate hike this month is likely, especially if markets stabilize and Friday's unemployment report shows strong job gains.
The Beige Book survey showed a somewhat mixed picture for manufacturing, with 10 regions reporting stable or positive growth overall but New York and Kansas City seeing declines.
The Boston, Philadelphia, Cleveland, Richmond and Dallas districts all said that a strong dollar had dampened manufacturing activity. Three districts cited China's deceleration as dragging on some business.
China's slowdown hurt demand for wood products in the San Francisco district, chemicals in the Boston area and high-tech goods in the Dallas.
The survey found real estate activity improved throughout the country, with home sales and home prices climbing in all 12 districts. Auto sales were also a bright spot in most regions.
Wages were reported to be "relatively stable" in most regions, although several districts noted wages heading higher in some industries. St. Louis said almost three-fourths of the businesses surveyed reported rising wages in the last three months, while Cleveland reported intensifying wage pressure in construction, retail and transportation sectors. Kansas City reported wage growth had either slowed or was flat.