NEW YORK – Nine of the twelve Federal Reserve Districts reported improved economic activity, generally modest, despite severe snowstorms, which held back activity in several districts, according to the Federal Reserve’s Beige Book.
“Overall conditions were described as mixed in the Atlanta and St. Louis Districts, though St. Louis noted further signs of improvement in some areas. Richmond reported that economic activity slackened or remained soft across most sectors, due importantly to especially severe February weather in that region,” according to the report.
Slight improvements in consumer spending were reported. Tourism was seen as “increased or mixed” and hotel occupancies rose. “The demand for services was generally positive across districts, most notably for health-care and information technology firms,” the report said.
Three of the five districts described transportation as improved, while manufacturing activity “strengthened in most regions, particularly in the high-tech equipment, automobile, and metal industries.” Minneapolis, Dallas, and San Francisco said activity was “flat or mixed.”
Even residential real estate was better in “a number of districts, although several districts noted that activity softened or remained weak partly due to extreme winter weather.”
Commercial real estate and construction activity was termed “weak or having declined further, but some Districts noted slight stabilization and a few signs of modest improvement.”
Loan demand stayed weak, while lending standards were tight. “Harsh weather continued to negatively affect agricultural activity, although some districts reported favorable crop conditions. Districts reporting on energy activity said it continued to strengthen, particularly drilling for natural gas,” the report continued.
“Price pressures were mostly limited, with the exception of some increases in raw materials prices. Even with input costs rising, selling prices remained stable due to competitive pressures and limited pricing power. Although some districts reported an uptick in hiring or a slowdown in layoffs, labor markets generally remained soft throughout the nation, which resulted in minimal wage pressures,” the Beige Book said.
