Manufacturing activity strengthened in most sectors in Februrary, while construction activity remained weak, according to the latest Federal Reserve Beige Book. Overall economic conditions continue to expand since the last report, although severe snowstorms in early February held back activity in several Districts.
Nine districts reported that economic activity had improved, those most increases were modest. Overall conditions were described as mixed in the Atlanta and St. Louis Districts. Richmond reported that economic activity slackened or remained soft across most sectors, due importantly to especially severe February weather in that region.
| We Deliver Distribution News to Your Inbox Sign up below to receive MDM Update, your free weekly distribution news update by email. |
Manufacturing activity increased further in most Districts, particularly in the high-tech equipment, automobile, and metal industries. In addition, Cleveland, Chicago, St. Louis and Dallas noted solid improvement in auto-related manufacturing.
All Districts reporting on commercial construction said that activity remained weak or slow, except for some moderate boost from federal stimulus projects and other public construction. Credit for commercial development and transactions was still very difficult to obtain in several Districts, though San Francisco noted a slight improvement in financing availability.
Staffing firms in the Boston District also saw a strengthening in demand, particularly from the financial and manufacturing sectors. Several manufacturing and construction firms in the Cleveland District began recalling workers, and temporary staffing accelerated in the Richmond, Atlanta, and Chicago Districts. However, Chicago said demand for permanent workers was low, and a manufacturing contact in the Richmond District held back employment due to productivity improvements.
Other highlights from the report include:
