Growth slowing in Midwest, Fed says

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A chunk of the Midwest saw economic growth slow in October and early November, the Federal Reserve Bank of Chicago said yesterday in its Beige Book report.

However, even though businesses ratcheted back spending, spending by consumers was mixed.

The report is issued eight times a year based on interviews and other means of gathering information on economic trends. The area of the Midwest included in the Chicago district includes Iowa and most of Indiana, Illinois, Michigan and Wisconsin.

The report said residential construction continued an ongoing decline, but nonresidential construction climbed. A manufacturing expansion under way in the prior reporting period cooled.

A tightening in credit standards didn’t hurt household or business spending, the Fed reported.

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