Fed survey shows US growth; hiring improves

WASHINGTON (AP) - A Federal Reserve survey of business conditions across the United States suggests last month's pullback in hiring may prove to be temporary.

The survey released Wednesday showed that each of the Fed's 12 bank districts grew steadily from mid-February through April 2. And the survey noted that hiring was stable or increased in most of the country.

The Labor Department last week said hiring slowed in March to half the pace from the previous three months. But the Fed survey, which is anecdotal, didn't reflect that slowdown.

The survey noted that job gains occurred in manufacturing, shipping, information technology and professional business services.

Businesses expressed concerns about rising gas prices. And retailers in five districts said they were worried that pricier gas would drag on consumer spending in coming months.

For now, consumers are still spending, the survey noted. Retail sales increased in almost all districts, the report said. And four districts said the short-term outlook for retail spending is positive.

Residential real estate activity improved in most areas, the report said, as developers built more apartments. And banks said that demand for loans is increasing.

The Beige Book is released eight times a year and is based on surveys by the Fed's 12 regional banks. There are no numbers in the report.

But its findings, which are released two weeks before the Fed's policy meeting, help influence the discussions.

When they meet April 24-25, members are expected to stick with their plan to hold short-term interest rates at record lows until at least late 2014. They will likely note the slower hiring pace reported by the government. Fed Chairman Ben Bernanke has cautioned that the economy is growing too slowly to maintain recent declines in the unemployment rate.

Until last week, the job market looked to be strengthening. Employers added an average 246,000 jobs from December through February, nearly 100,000 more per month that the previous three months.

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