Associated Press (08/29/12)

The U.S. economy expanded gradually in July and early August, as the jobs market only grew slightly, the U.S. Federal Reserve announced in its latest “beige book” report. The economy expanded at a modest-to-moderate pace in more than half of the central bank’s 12 districts, but some saw slower or mixed growth. Most districts indicated that employment was “holding steady or growing only slightly,” according to the report, with some companies preparing for upcoming layoffs.

The Fed report will inform discussions when central bank policymakers next meet Sept. 12-13. Financial markets are hoping the central bank will provide more support to boost a sub-par economic recovery. Fed chairman Ben Bernanke could signal future moves in an Aug. 31 speech.

Bloomberg (08/30/12) Lorraine Woellert

Applications for U.S. jobless benefits were flat last week at a seasonally adjusted 374,000, the U.S. Department of Labor reported today. The median forecast of 50 economists surveyed by Bloomberg News called for 370,000. Initial claims from two weeks ago were revised up to 374,000 from an original reading of 372,000, based on more complete data collected at the state level. The average of new claims over the past month, meanwhile, rose by 1,500 to 370,250.

Bloomberg Business Week (08/30/12) Alex Kowalski

Consumer spending in the U.S. rose in July at the fastest pace in five months, with spending increasing 0.4% last month on a seasonally adjusted basis, according to the U.S. Department of Commerce. The uptick was the first increase in consumer spending in three months. The median estimate of 76 economists surveyed by Bloomberg called for a 0.5% gain in spending. Personal income, meanwhile, rose 0.3% for the third straight month.