WASHINGTON - The economic recovery is finally spreading to all parts of the country. But the modest pace of growth suggests companies won't be ramping up hiring to quickly drive down unemployment.

A Federal Reserve survey known as the "beige book," released Wednesday, found that economic activity improved across all 12 regions tracked. The last time all regions were in a growth mode was roughly before the recession started in December 2007.

In the new survey, manufacturing picked up, retail sales grew, tourism improved and housing was helped by the now-expired tax credit for home buyers. But commercial real estate is weak and labor market conditions improved only "slightly."

The picture painted by the survey is consistent with Fed chairman Ben Bernanke's view - which he shared with Congress on Wednesday - that a modest economic recovery is unfolding. Bernanke predicted the recovery remains on track despite Europe's debt crisis, which has put Wall Street on edge in recent weeks, and stubbornly high unemployment, now at 9.7 percent.

"It appears … that the recovery has made an important transition," Bernanke told lawmakers. While it can't be entirely ruled out that the country could slide back into a "double dip" recession, Bernanke predicted that the "economy will continue to recover at a moderate pace."

However, economic growth won't be strong enough to bring speedy relief to millions of out-of-work Americans, he said.