KANSAS CITY (March 7, 2013) — Economic activity in the Federal Reserve's 12 banking districts "expanded at a modest to moderate pace" in January and early February 2013, according to the Beige Book issued periodically by the Federal Reserve Bank of Kansas City.
The new Beige Book summarized comments from businesses and other contacts outside the Federal Reserve on or before Feb. 22, 2013, according to the document's summary.
Of the 12 districts, five reported moderate economic growth and five modest growth, the document said. The Boston and Chicago districts, however, reported only slow growth.
Consumer spending expanded in most districts, though many districts cited the expiration of the payroll tax holiday, higher gasoline prices and the effects of the Affordable Care Act as dampening factors. The Kansas City district reported lower sales and the expectation of flat consumer spending in the near future.
Auto sales were solid in most districts, with Cleveland crediting milder-than-usual weather for robust sales growth, the document said. Tourism was strong, due largely to heavy snowfall at ski resorts; the New York district reported strong hotel occupancy, though some of that was because of families still suffering displacement from Hurricane Sandy.
Demand for services, especially technology and logistics, was strong in all districts, the Beige Book said. Transportation services activity was mixed, though most districts were optimistic about future growth. Residential real estate markets strengthened across the board, as did housing prices. Commercial real estate was mixed, though financing for commercial real estate was widely available.
Overall loan demand was stable or slightly higher across nearly all districts, with stiff competition for qualified borrowers, the document said.