Fed survey shows rise in economic uncertainty Businesses across America blamed the federal government shutdown and debt ceiling debate for an increase in economic uncertainty, according to the US Federal Reserve's latest report on business conditions. But despite that, businesses remained "cautiously optimistic in their outlook," suggesting there may be little lasting damage from the latest fiscal row in Congress. The Fed's Beige Book said that the economy expanded at the same "modest to moderate pace" in September and early October as it did during the summer. That kind of steady but mediocre growth is unlikely to persuade the Fed to slow its asset purchases from $85bn a month. The Beige Book - which is a collection of anecdotes compiled by talking to businesses across the twelve Fed districts - will take on unusual importance this month because of delays to official economic statistics caused by the government shutdown. Normally it lags behind the economic data, but the latest report is a useful indicator in pointing to modest jobs and spending growth in September. That could give the report unexpected prominence at the Fed's next meeting on October 29 and 30. Eight of the twelve districts said that growth in economic activity was little changed from the summer while the Philadelphia, Richmond, Chicago and Kansas City districts said it had slowed somewhat. Several districts said that tourism had been hit by the government shutdown. "Tourism contacts in the Boston District were concerned about the potential impact of a protracted federal government shutdown," the report said. "Richmond noted that the shutdown had led to the closing of some tourist attractions, although hotel contacts indicated that these closures did not result in guest cancellations," it said. Kansas City also reported slower tourism because of flooding in Colorado. The shutdown and the start of the Affordable Care Act also appeared to have some effect on business hiring plans. "Several Districts reported that contacts were cautious to expand payrolls, citing uncertainty surrounding the implementation of the Affordable Care Act and fiscal policy more generally," the Beige Book said. In manufacturing, "there was little immediate disruption from the federal government shutdown," but the Fed's contacts "were worried about the potential impact if the closing became prolonged." The Boston district flagged the debt ceiling as a particular problem. "Firms doing business with the government have been affected by the sequester," it said. Other firms are also concerned about potential effects of the government shutdown on consumer demand or broader economic effects of hitting the debt ceiling.