Beige Book: Economy Stronger in All Districts

WASHINGTON — Reports from the 12 Federal Reserve Districts indicate that the economy grew stronger from late February to early April, according to the Fed's Beige Book released Wednesday.

"Activity in the Cleveland, Richmond, St. Louis, Minneapolis, and Kansas City Districts was characterized as growing at a moderate pace, while the Boston, Philadelphia, Atlanta, Chicago, and San Francisco Districts noted modest growth," the report states. "The New York and Dallas Districts indicated that the pace of expansion accelerated slightly since the previous Beige Book."

The Boston and Chicago districts had both reported sluggish economic growth in the March report.

Manufacturing was particularly stronger from the previous report, with most districts reporting increased activity in that sector.

"Particular strength was seen in industries tied to residential construction and automobiles," the report states.

Retail spending was mostly up, the Fed said, while employment conditions were generally unchanged or slightly improved.

The Beige Book notes that some sectors reported uncertainty in defense-related sectors, as the Pentagon continue to move forward with significant spending reductions imposed by sequestration. Overall, however, respondents seemed more upbeat than in previous Beige Books.

"Outlooks among respondents remained optimistic across sectors and districts, with growth mostly expected to continue at the same or a slightly improved pace," the report states. Some uncertainty remained, primarily regarding fiscal policy and health care reform."

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