Fed says consumer spending, auto sales boost U.S. growth

Fed says consumer spending, auto sales boost U.S. growth

WASHINGTON — The Federal Reserve says steady consumer spending and an improving housing market spurred modest U.S. economic growth in the late summer, though factory output was sluggish in part because of the strong dollar.

The Boston Fed said that advertising and consulting firms were planning to add jobs, while manufacturers were laying off workers.

Steep drops in oil and gas prices in the past year continued to weigh on many energy producers, which are still cutting jobs in Texas, the Dallas Fed said.

The stronger dollar has also discouraged many overseas tourists from visiting the United States by raising the cost of hotel rooms and other goods and services.