Economic expansion continued in most of the country from mid-February through the end of March, although the Atlanta and Kansas City Federal Reserve districts termed conditions "steady," according to the Beige Book, released by the Federal Reserve on Wednesday.
Moderate expansion was seen in the Richmond, Chicago, Minneapolis, Dallas and San Francisco districts, while modest growth was reported in New York, Philadelphia and St. Louis. "Boston reported that business activity continues to expand, while Cleveland cited a slight pace of growth," according to the report.
"Demand for manufactured products was mixed during the current reporting period," the report states, with the strong dollar, lower oil prices and the severe winter all tamping down of activity.
Retail sales improved in "a majority of districts," with reduced energy costs giving consumers more spending cash. Auto sales grew in most regions, according to the report.
"Tourism and business travel is rebounding from the harsh winter, with contacts expecting growth for the remainder of the year in corporate and leisure travel," the report notes. "Residential real estate activity was steady to improving across most districts, although there was some slowing in housing starts due to abnormal seasonal patterns owing to the harsh weather. Multifamily construction remains strong."
Banking was stable for the most part, although there was "some improvement" in loan demand.
"Labor markets remained stable or continued to improve modestly," the report states. "Layoffs related to the decline in oil and gas prices were reported in multiple Districts. Difficulty finding skilled workers was frequently reported. Districts noted modest upward pressure on wages and overall prices."
