Reports from the 12 Federal Reserve Districts indicate economic activity continued expanding across most regions and sectors during the reporting period from July to mid-August, according to the Federal Reserve Beige Book.
Six districts cited moderate growth while New York, Philadelphia, Atlanta, Kansas City and Dallas reported modest increases in activity. The Cleveland district noted only slight growth since the last report. In most cases, these recent results represented a continuation of the overall pace reported in the July Beige Book. Respondents in most sectors across districts expected growth to continue at its recent pace, but the Kansas City report cited more mixed expectations.
District reports on manufacturing were generally positive during the reporting period. Ten districts reported stable or positive growth and only two, New York and Kansas City, registered declines. Several areas of strength were noted: Auto sales have generally been above expectations and Cleveland, Richmond, and Chicago all reported strong growth in auto-related manufacturing. Aerospace, particularly commercial aviation, continued as a plus for manufacturing production in the Chicago, Dallas and San Francisco Districts.
Demand from the construction industry was strong, with the Boston, Philadelphia, Cleveland, Chicago, Minneapolis, and Dallas Districts reporting increases in demand for construction-related goods from lumber to construction machinery.
Demand for nonfinancial services, including staffing, generally expanded over the reporting period. Districts mentioning the transportation sector mostly noted activity increases. Districts reporting on the banking sector mostly tallied increases in both business and consumer loan volumes. Credit quality was reported to be improving in most Districts, while credit standards were generally said to be unchanged.
Reports on residential and commercial real estate markets across the Districts were mostly positive. Existing home sales and residential leasing widely improved, with home prices moving up in most areas. Commercial real estate activity also rose in most Districts; commercial construction activity ranged from strong in the Cleveland and Minneapolis Districts to up only slightly in Chicago, while commercial leasing was reported to have increased across the board.
