US economy withstands fiscal cliff concerns The US economy withstood concerns about the fiscal cliff in December with the Federal Reserve's business contacts reporting growth across the country. All 12 districts of the US Federal Reserve system reported moderate or modest growth according to the central bank's latest Beige Book survey. The report is an encouraging sign that uncertainty about fiscal policy did not freeze overall economic activity in the US and suggests the economy went into 2013 with some momentum. But there were still some indications that tax and spending decisions were weighing on sentiment. Retailers reported a more pessimistic outlook for future sales because of "concerns that consumers will spend cautiously due to ongoing fiscal uncertainty," according to the report. The Beige Book is a narrative commentary on economic conditions across the US compiled by regional Fed banks from their conversations with local businesses. It acts as a back up to numerical indicators such as industrial production and purchasing manager surveys. Activity in the New York and Philadelphia districts - those affected by superstorm Sandy - recovered in December. The Boston, Richmond and Atlanta districts all reported an increase in economic activity while St Louis suffered a slowdown. The Fed's business contacts also verified the increasingly strong recovery in the housing sector. Every district that reported an increase in residential real estate activity, including areas in the Atlanta and San Francisco Fed districts - such as Florida and California - that were hit hard by the housing crash. The picture was more mixed in manufacturing, with six districts reporting growth, three districts a contraction, and two recording little or no change. Some businesses reported a slowdown in export orders, especially from Europe, showing the drag on the US economy from weaker growth around the world. Oil and gas production stayed at high levels in the Cleveland, Richmond, Minneapolis, and Dallas districts, and reached "historic" levels in the San Francisco district that covers much of the area west of the Rocky mountains. But coal production fell in the Cleveland, Richmond, Chicago, St Louis and Kansas City districts compared with the previous Beige Book at the end of November.