According to the latest Beige Book report, all twelve Federal Reserve districts noted that economic activity expanded during the current reporting period. The pace of growth was characterized as moderate in the Boston, New York, Richmond, Chicago, Minneapolis, Dallas, and San Francisco Districts, and modest in the remaining regions. Compared with the previous report, the pace of growth picked up in the Cleveland and St. Louis Districts but slowed slightly in the Kansas City District.

The following highlights were excerpted from the report:

Overall lending activity increased throughout the nation. Roughly two-thirds of the Districts reported rising loan demand, with particular strength reported in New York and San Francisco. Credit quality and delinquency rates generally improved, while credit standards were mostly unchanged.

Manufacturing activity expanded in all twelve Districts since the previous report, with a pickup in the pace of growth reported in several Districts. Activity expanded robustly in the Boston, New York, Atlanta, and Kansas City Districts, while a more modest pace of growth was reported by Chicago, St. Louis, Philadelphia, Cleveland, Dallas, and Minneapolis. Activity expanded more slowly in the Richmond and San Francisco Districts. Growth was especially strong for several Districts in activity related to motor vehicles, aerospace, and metals. By contrast, construction-related manufacturing activity was mixed.

Activity in the energy industry generally increased since the previous report. Atlanta and San Francisco reported that crude oil production expanded strongly, and Dallas noted that the demand for oilfield services was robust. Natural gas production climbed in the Richmond and Atlanta Districts. Minneapolis highlighted a number of recent or planned projects to expand energy production capacity. St. Louis reported that coal production was up from year ago levels, while coal production held steady in the Cleveland District but fell in the Richmond District.

Non-residential construction activity was steady to stronger in most Districts over the latest reporting period, with strengthening reported in the Boston, St. Louis, and Kansas City Districts. Cleveland described pipeline activity as strong, and San Francisco noted that a number of public and commercial high rise projects have been announced or are underway. In contrast, Minneapolis reported a decline in non-residential construction activity, and Philadelphia characterized it as steady at a low level; Chicago described activity as mixed–with office construction weak but industrial and some segments of retail fairly strong. The commercial real estate market was mostly stronger since the last report.

To view the full Beige Book report, click here.