The US economy is seeing a broader improvement in activity even if conditions are still sluggish, the Federal Reserve said in its Beige Book report this evening.
The report, to be used by policymakers at the Federal Open Market Committee meeting on January 26-27, said data from the 12 Federal Reserve districts showed modest improvement in key areas such as consumer spending, manufacturing and housing.
The data 'indicated that while economic activity remains at a low level, conditions have improved modestly further, and those improvements are broader geographically than in the last report,' the Beige Book said.
Ten districts reported some increased activity or improvement in conditions, while the remaining two - Philadelphia, Pennsylvania, and Richmond, Virgina - reported 'mixed conditions'. This was better than the last Beige Book when eight districts showed increased activity four were little changed.
Most districts reported consumer spending in the Christmas season 'was slightly greater than in 2008, but still far below 2007 levels.'
Car sales held steady or increased slightly since the last Beige Book in most regions. Manufacturing activity has increased or held steady since the last report in most districts,' it added.
Home sales increased in most areas, especially for lower-priced homes, with prices little changed. In the critical labour market, the Fed cited some hiring in a few parts of the US but said 'labour market conditions remained generally weak with modest wage increases appearing in just a few districts.'
