Reports from the 12 Federal Reserve Districts indicate economic activity increased at a modest pace in most regions of the country during the reporting period from October to mid-November, according to the Federal Reserve Beige Book.
Economic growth was modest in the districts of Cleveland, Richmond, Atlanta, Chicago, St. Louis, Dallas and San Francisco. In the Minneapolis district the economy grew moderately, while in the Kansas City district growth was steady on balance with mixed conditions across sectors. In the New York district economic conditions leveled off since the previous report, and in the Philadelphia district aggregate business activity continued to grow at a modest pace. In the Boston district, growth was somewhat slower despite reports of revenue increases.
Conditions in the manufacturing sector were mixed in recent weeks. Several districts reported that firms continued to cite the strong dollar, low commodity prices, and weak global demand as factors for constrained demand. The Boston and St. Louis districts reported moderate growth, noting that overall conditions improved since the previous report. Manufacturing in the Richmond, Atlanta and Dallas districts grew modestly, with reports that new orders and production levels increased slightly. Chicago reported modest growth in the past six weeks. Cleveland, Kansas City and San Francisco stated that manufacturing activity appeared flat on balance. In contrast New York, Philadelphia and Minneapolis reported a decline in manufacturing activity.
Housing markets improved at a moderate pace since the previous Beige Book, and home prices increased modestly. Home sales rose in the Boston, New York, Philadelphia, Cleveland, Richmond, Chicago and Kansas City districts. Philadelphia described a "slow growth market" in which inventories were stable at low levels. Housing inventories continued to fall year-over-year in the Boston, Cleveland, Richmond and St. Louis districts.
Residential construction grew at a modest to moderate pace since the previous report. The New York, Philadelphia, Cleveland, Atlanta, Chicago, St. Louis and Kansas City districts reported growth in residential construction, while construction in Dallas and Minneapolis was flat.
Commercial construction strengthened modestly in most districts. However, the Minneapolis district saw continued strong growth, particularly in cities where commercial permitting increased. In contrast, New York reported little change. Commercial leasing activity generally grew at a moderate pace in recent weeks. Activity increased in the districts of Boston, Cleveland, Richmond, Atlanta, Chicago, Dallas and San Francisco, but was unchanged in the New York district.
