USA Today (10/11/12) Paul Davidson

The U.S. Federal Reserve released its beige book report on Oct. 10, indicating the economy grew modestly in late August and early September, with activity picking up in 10 of 12 districts. The job market was little changed despite a government report last week that said unemployment in September fell to 7.8% from 8.1%, according to a survey of households. Employment was flat or up slightly in the Boston, Cleveland, Atlanta, Minneapolis, and Dallas areas but weaker in New York and Chicago.

Uncertainty about looming tax increases and spending cuts, the presidential election, and the European financial crisis all restrained hiring, the report said. At the same time, employers in several areas said they were having trouble finding skilled employees. The report reflects an economy that most analysts believe grew at a tepid annual pace of 1.5% to 2% in the third quarter.