US sees limited economic growth
Fed chairman Ben Bernanke
It remains to be seen whether the Fed will maintain interest rates
The US economy has grown overall since mid-July but both the construction and housing markets have slowed, the Fed's Beige Book showed.

The survey, an indicator of economic conditions, saw five out of 12 Federal districts report slower growth.

Though energy prices were continuing upwards, this cost was not being passed on to consumers, the Fed said.

Signs that the US economy is cooling could strengthen the argument to maintain rates unchanged.

Home sales

In early August, the Federal Reserve maintained interest rates at 5.25%, the highest level in more than five years, after seventeen consecutive increases.

High energy prices, which have fuelled inflation, have led the Fed to increase rates to stall price growth.

Nearly all districts saw falling home sales from mid-July to the end of August, while homes still on the market increased.

Philadelphia, Cleveland, Atlanta and Kansas City all reported worries that housing markets would stay weak in the near future.

In contrast, manufacturing expanded throughout the 12 districts, but some sectors saw weaknesses - including cars and home-building.

The Federal Reserve will use the data from the survey for its next policy meeting on 20 September.

Productivity

In other data released on Wednesday, the productivity of US workers - measured in hourly output per worker - rose to an annual rate of 1.6% in the quarter to June, beating expectations.

Meanwhile wages saw a more marked increase, rising by 4.9% during the period from a 4.2% estimate.

Though welcome news for workers, such signs prompt fears that the Fed might be tempted to up rates once again.

Story from BBC