Manufacturing Leads Economic Improvement

Washington, DC, April 14, 2011 -- The U.S. economy continued to improve over the past month on strength in manufacturing, the Federal Reserve said on Wednesday.

"While many districts described the improvements as only moderate, most districts stated that gains were widespread across sectors," the U.S. central bank said in its Beige Book summary.

"Manufacturing continued to lead, with virtually every district citing examples of steady improvement, often with reports of increased hiring," the Fed added.

The Beige Book was based on information collected in all 12 regional Fed districts before April 4 and was compiled by the Federal Reserve Bank of Richmond.

However, higher energy and commodity costs are causing some concern among businesses, the Fed said.

Also, housing remains weak, with most districts reporting flat or weaker markets for single-family dwellings.