The U.S. Federal Reserve says the U.S. economy has expanded modestly across most of the nation on the back of an improved housing market.

Based on information provided by 12 regional Federal Reserve banks, the Fed said in its latest Beige Book report that overall economic activity gradually improved in the U.S. last month.

The U.S. central bank noted that with a rise in home construction, the housing market continued to improve after hitting bottom. It also said that activity in the energy sector remained strong.

The Fed said that little change was made in the labor market, since hiring was restrained by uncertainties related to the upcoming presidential election, the next government’s new fiscal policies and the European debt crisis.