Fed Says Several Districts `Noted Some Slowing' (Craig Torres)

  A third of the Fed's 12 district banks report some signs of weakening growth.

  March 7 (Bloomberg) -- Several Federal Reserve districts ``noted some slowing'' amid a modest U.S. economic expansion with little change in price pressures.

  ``Several districts noted some slowing,'' the Fed's regional survey of the economy said, citing four of the dozen district reserve banks. Still, ``most Federal Reserve districts reported modest expansion in economic activity.''

  The general tone of the report was upbeat. Fed banks reported continued growth in retail sales and rising demand for services. Manufacturing activity was ``steady.'' Housing remained weak, ``but signs of stabilization were noted in several districts,'' the survey said.

  Fed officials are watching for signs of a deeper economic slowdown after last week's global equities rout and reports showing a prolonged downturn in housing. Other figures in the past week have shown that fourth-quarter growth was less than previously forecast, factory orders fell in January and service industries expanded at a slower pace.

  A third of the Fed's 12 district banks reported some signs of weakening growth.

  The New York Fed spotted ``a few signs of deceleration,'' and the St. Louis Fed said that ``activity increased more slowly'' than in the previous period. The Dallas Fed said ``economic activity continued to decelerate,'' and the Boston Fed ``reported some softening.''

  The Federal Open Market Committee's predicts the economy is likely to expand at a moderate pace, easing inflation pressures over time. Fed officials next meet March 20-21 to set interest rates, and economists expect them to leave the benchmark rate at 5.25 percent.

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