Washington ? Economic activity was accelerating in early fall with consumer spending strong in most parts of the country and even the nation’s beleaguered manufacturing sector showing signs of life, the Federal Reserve reported Wednesday.

In its latest survey of business conditions around the country, the Fed said its 12 regional banks were reporting a number of signs that the recovery from the 2001 recession was finally beginning to gain momentum.

Ten of the Fed’s 12 districts reported stronger economic activity, according to information gathered in September and early October while the other two — Boston and Cleveland — reported economic activity was mixed but at least not declining.

“On balance, the pace of economic expansion has picked up since the last report,” the Fed concluded in its latest “Current Economic Conditions” survey.

This survey will be used when Fed policy-makers meet Oct. 28 to review interest rates. Most analysts believe the central bank will leave its target for banks’ overnight borrowing unchanged at a 45-year low of 1 percent.

Federal Reserve Chairman Alan Greenspan and other Fed officials have indicated they are prepared to leave rates low for a considerable period of time to make sure that economic growth strengthens enough to spur companies to start rehiring laid off workers.