The US economy grew modestly in recent weeks in nine of the central bank’s 12 districts, in a sure sign that the recession is behind us.
The latest Federal Reserve report on regional economic conditions, called the Beige Book, said the economic growth was somewhat hampered by snowstorms in several districts, notably Richmond.
Overall consumer spending looked up slightly. Construction also moved upwards slightly in some areas. New residential permits in Sioux Falls increased 15 percent in value in January from the previous year, and remodeling activity increased too. Home sales were also up.
But commercial real estate is still down. So is agriculture. Manufacturing remained flat. The pace of job losses has slowed and wages remained stable, all indicating that the economy has stabilized, and a recovery, although tenuous, has been underway.
The Beige Book is a chance for the Fed to give policy-makers a feel for conditions across the country before their next meeting on March 16.
The Fed said that consumer spending improved slightly in many districts since the last survey, which was published in January.
The services sector also improved, led by health-care and information technology firms. Manufacturing activity strengthened in most regions, with gains in the high-tech equipment, automobile, and metal industries.
Residential real estate continued to improve in many regions, although several districts said activity was hurt by extreme winter weather.
Commercial real estate and construction activity was weak or declined in many parts of the country, but some districts reported slight stabilization and a few signs of modest improvement.
The report pointed out that snowstorms that devastated much of the Northeast and parts of the South in February badly hit farming.
It said demand for loans remained weak, and lending standards continue to be tight across the country. Consumer prices were tame, despite some increases in the costs of raw materials.
Though job market remained weak throughout the nation, some districts reported an upward trend in hiring or a slowdown in layoffs.
The Beige Book precedes, by about two weeks, the central bank’s scheduled policy meeting when interest rate levels are discussed. The next meeting is scheduled for March 16.
The U.S. economy grew at an annual rate of 5.9% in the last three months of 2009. That growth, the best in more than six years, follows a 2.2% annualized increase in the third quarter.
Most economists now agree that the economy pulled out of recession last summer.