Fed survey: Economy falters in several US regions

Fed survey: Economy falters because of slower manufacturing and weaker consumer spending

Christopher S. Rugaber, AP Economics Writer, On Wednesday June 8, 2011, 6:25 pm EDT

WASHINGTON (AP) -- For the first time this year, the economy has slowed in several U.S. regions, burdened by high gas prices that have weakened consumer spending and crises in Japan that reduced manufacturing output.

All 12 of the Federal Reserve's bank regions grew this spring. But four regions endured slower growth in April and May compared with earlier this year, a Fed survey released Wednesday showed.

It was the weakest survey since fall, when two regions failed to grow at all. And it confirmed a slew of recent data that portray a national economy whose growth has faltered. Hiring has slowed, orders to factories have declined and home prices have fallen.

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