U.S. service companies grew at a faster pace in December, helped by an economy that gained strength in the final months of the year.

Consumer spending and incomes barely rose last month. Business investment has slowed. New-home sales remain dismal.

Some say they'll spend less on groceries. Others expect to cut back on travel. For many, there would be fewer meals out.

The economy expanded at a slow to moderate pace over the past two months in most areas of the country, but overall hiring was weak, according to a Federal Reserve survey released Wednesday.

U.S. workers increased their productivity over the summer by the most in a year and a half but the gain was smaller than initially thought.

The U.S. economy grew more slowly over the summer than the government had earlier estimated because businesses cut back more sharply on restocking of shelves.

Federal Reserve Chairman Ben Bernanke on Wednesday acknowledged that the pace of economic growth is likely to be "frustratingly slow," after the Fed downgraded its forecast for the next two years.

The Federal Reserve is holding off on any new actions to help the economy because stronger growth is giving it time to gauge the impact of steps it's already taken.