Fed Report Shows Economy on The Mend

Washington, DC, March 4, 2010--The U.S. economy continued to improve slowly in February, according to the latest Beige Book survey of economic conditions released Wednesday by the Federal Reserve.

Nine of the Fed's 12 regional banks reported that economic activity had improved in February, the survey found, despite severe winter storms in some areas.

Two districts, St. Louis and Atlanta, reported a more mixed performance and one district, Richmond, was snowed under.

The beige book survey is a collection of anecdotes compiled by the Fed to give policy-makers a feel for conditions across the country.

Economists are generally in agreement that the economy is growing at a modest pace.

The survey found no improvement in credit conditions. The inability of businesses to obtain credit is a critical factor behind the sluggish growth pace.

Loan demand remained weak and banks were sticking to tight lending standards, the survey found.

There were also no signs of improvement in the labor market. Although the pace of layoffs has slowed down, hiring has still "soft," the survey said. This kept wage pressures low.

In general, consumers were somewhat more willing to spend.