Fed reports modest growth as housing drags

The report, which consists of findings from the 12 Federal Reserve Districts, said growth was modest as the housing market remained weak. It covers a time period between September and early October. 

Manufacturing expanded with production and new orders rising across most districts, and sales of new vehicles either rose or held steady, according to the report. Sales of used vehicles were strong, and the travel and tourism industry picked up. 

Housing, which helped cause the financial crisis and has been a severe drag on the recovery, showed little sign of improvement. Most districts reported sales below year-ago levels, and construction remained weak. 

The Federal Reserve is widely expected to launch a second “quantitative easing” program to push more money into the economy out of concern with the weak recovery. The Board of Governors for the Federal Reserve will meet shortly after the midterm election. 

Stocks were rising Wednesday after suffering losses a day before. The Dow Jones Industry was up more than 150 points at mid-day Wednesday.