NEW YORK – The recovery continued through early February, as “modest to moderate” expansion was seen in all twelve Federal Reserve Districts, according to the Beige Book report released Wednesday.
Kansas City and San Francisco districts reported expansion, while Boston and Philadelphia called conditions “improving.” New York, Cleveland, Richmond, Atlanta, and St. Louis saw modest improvement, while Minneapolis and Dallas reported “moderate growth.” While Chicago’s economy increased in activity, “it was at a pace not quite as strong as during the previous reporting period.”
Retail sales improved everywhere, except Richmond and Atlanta, despite Boston, New York, Philadelphia, Atlanta, and Kansas City complaining about snowstorms curtailing retail activity.
“Tourism improved in Richmond, Atlanta, and San Francisco, while New York and Kansas City noted a slowdown in activity as hotel occupancy rates declined,” the report noted.
Residential real estate operated at “low” levels, although some Districts saw “a slight increase” in activity, and most Districts said nonresidential construction was “weak.”
The manufacturing sector improved everywhere except St. Louis, and new orders improved in Philadelphia, Atlanta, Chicago, Kansas City, and San Francisco.
Most regions observed an increase in nonfinancial services.
Richmond, Dallas, and San Francisco saw increased loan demand and Kansas City experienced a decrease. “Most Districts reported that credit standards were unchanged to tighter,” according to the report.
Boston, Richmond, and Chicago reported more permanent job placements, while Atlanta reported a preference for temporary workers, as modest improvement was reported in the labor markets.
“Manufacturing and retail contacts across Districts reported rising input costs. Manufacturers in many Districts conveyed that they were passing through higher input costs to customers or planned to do so in the near future,” the report said. “Homebuilders in the Cleveland and Atlanta Districts noted rising material costs, but acknowledged little ability to pass through the costs to buyers. Retailers in some Districts mentioned they had implemented price increases or were anticipating such action in the next few months.”
