US consumers kept a tight grip on their wallets over the holiday season, according to the country's central bank.

The Federal Reserve's so-called "Beige Book" - an anecdotal survey of economic conditions across the US - said activity in most parts of the country continued to be "sluggish" or "subdued".

The closely-watched report contains few signs that the US economy is starting to pick up pace.

In fact, it said, there was little change from the previous survey, which covered the period from late October.

'Anaemic'

It said: "Reports on consumer spending were consistently weak, with disappointing holiday sales that, in nominal terms, mostly were at or below last year's levels."

The weakest report came from Dallas, where economic activity "remained anaemic".

"The manufacturing sector continued to struggle with weak demand and excess capacity, although, on balance, slight improvement was evident," the report adds.

Car sales, however, "surged" at the end of the year on the back of special offers, the central bank said.

Federal Reserve policymakers will take the Beige Book into consideration when they next meet to discuss interest rates on 28 to 29 January.

The bank is widely expected to leave rates - already at their lowest levels in four decades - unchanged.

Budget deficit

On employment, the Beige Book said demand for workers was "mostly flat."

And while employee benefits and some resources were costing more, wages and consumer prices were being held in check.

The report was compiled by the Federal Reserve Bank of San Francisco based on information collected before 7 January.

The Fed's report comes as the White House said the US would continue to run a budget deficit for the "foreseeable future".

White House Budget Director Mitch Daniels predicted "modest" and "manageable" deficits of about $200bn to $300bn in this financial year and the next.