The U.S. economic recovery gathered speed in recent weeks as consumer spending strengthened and manufacturing activity picked up, the Federal Reserve said Wednesday.

While labour markets remained weak, five of the 12 Fed districts saw some signs of improvement, it said.

“Information received from the district banks suggests that, on balance, the pace of economic expansion has picked up since the last report,” the Fed said in its “beige book,” an anecdotal snapshot of economic conditions across the U.S..

The report is unlikely to change expectations that the Fed will hold the line on interest rates at least into early next year.

It noted an absence of inflation, and a weak but improving jobs market.

“Labor markets remain generally slack, but some signs of a pickup are reported in New York, Richmond, Chicago, Minneapolis and Dallas,” the Fed said.

“Prices of finished goods were generally stable, and wage increases continued to be quite modest, though many districts note continued escalation of non-wage benefit costs — particularly health insurance,” it added.