WASHINGTON - The economy continued to improve in the final two months of 2010 as all 12 Federal Reserve districts reported some improvements in manufacturing and retail, the Fed reported Wednesday in its Beige Book – an anecdotal compilation of economic activity.
Residential real estate and commercial construction continue to drag on the economy, as eight districts reported slow sales. All districts said economic concerns were the primary hindrance to improving sales, but access to credit was also cited as a problem in some districts.
Retail sales were stronger in all districts. The Richmond District said media reports about consumer spending helped stores reel in shoppers. The late December snowstorms affected sales in the New York and Philadelphia districts, the report said.
Manufacturing was the other major source of economic improvement. Production levels increased in four districts. Manufacturers in the St. Louis and Minneapolis districts said they have or will soon expand capacity. Three districts reported concerns over commodity prices.
The employment picture showed grudging improvement in most districts. Businesses reported only modest additional hires beyond replacement hiring, the districts said.
This Beige Book was prepared by the Federal Reserve Bank of Boston based on information collected by Jan. 3.
