Economic Activity Expanded in February Says Beige Book

Washington, D.C., March 5, 2015—Reports from the twelve Federal Reserve Districts indicate that economic activity continued to expand across most regions and sectors from early January through mid-February, reports the Federal Reserve System in its Beige Book Report.

Six Districts noted that the local economy expanded at a moderate pace since the prior reporting period.

Consumer spending rose in most Districts, and contacts were generally optimistic about near-term sales.

Travel and tourism also increased in the reporting Districts.

Manufacturing generally posted gains across the Districts, although at varying rates.

The demand for nonfinancial services also grew moderately on balance.

Home sales increased in most Districts, while reports on residential construction were mixed. Commercial real estate market conditions remained stable or improved across the Districts.

Banking conditions generally improved, and credit quality remained largely unchanged.

Agricultural conditions generally worsened, and oil and natural gas drilling declined.

Payrolls remained stable or expanded across the Districts, and contacts noted employment gains in a broad range of sectors.

Wage pressures remained moderate and were limited largely to workers in skilled occupations. Most District contacts cited only flat to slightly increasing prices.