Washington, DC, April 21--The economy is continuing to grow, but not all regions are experiencing good economic times, according to a Federal Reserve report released Wednesday.
Some regions, including Kansas City, Atlanta and San Francisco, reported solid growth, while Chicago and Dallas were less upbeat, according to the latest Fed Beige Book report on current economic conditions.
The New York and Cleveland districts reported "uneven progress across sectors," and the Richmond district said growth in March was subdued.
Higher energy costs were seen boosting price pressures and restraining consumer spending.
Reports from many districts suggest "upward price pressures have strengthened" as the result of higher energy costs, the report said.
"Price pressures have intensified in a number of Fed districts, and most report that high or rising energy prices are a concern across sectors," the report found.
A majority of districts reported improving retail sales, but a few districts "showed flat or disappointing results."
Several regions noted that consumer spending was either subdued or disappointing, and contacts blamed "unfavorable weather conditions, and in part, high or rising energy and gasoline prices."
There was some evidence of increased prices and pricing power in the retail sector, the report said.
Manufacturing activity continued at a solid pace, the report said. Only in the New York region, was manufacturing reported to be weak. The region's Empire State manufacturing index fell to its lowest level in two years in April.
Residential real estate markets were very active across the country.
There were contradictory reports about prices in the factory sector. Several contacts reported firms having partial success in passing on higher energy prices to their customers. But there were several other reports of firms having to rescind price increases and accept lower margins.
New vehicle sales were flat or only up slightly, the Beige Book found.
One sector continuing to do remarkably well was travel and tourism as many foreign visitors flock to the U.S. to take advantage of favorable exchange rates.
