U.S. regional survey finds improvement

Associated Press

The Federal Reserve last week released its "beige book" survey of its 12 districts and found the economy has "displayed signs of improvement" since March.

"Retail sales increased or held steady in most districts, and all districts reported stable or improved manufacturing conditions," it said. Still, plans by businesses to invest in machinery and equipment nonetheless "remained limited."

Fed Chairman Alan Greenspan said the strength of the economy "is going to be driven by the rapidity with which the capital goods markets recover."

The outlook for some of the major regions:

• Boston: Business conditions mixed. Most retailers reported same-store sales flat from a year ago. Auto dealers said sales were good but reported a small slowdown. Revenues steady or down for manufacturers, but demand showed signs of picking up for defense contractors and companies producing consumer products. Residential real-estate market strong.

• New York: Economy strengthened. Major retailers reported mixed sales, but close to expectations. Manhattan department stores, jolted by Sept. 11 attacks, said business has rebounded fully. Sales of home furnishings and electronics strong. Manufacturers cited better business conditions and reported widespread optimism about near-term outlook.

• Chicago: Retailers said sales picked up modestly, with entertainment equipment and toys selling briskly, but clothing sales were weak. Manufacturing activity improved a bit, although growth was slow in production and orders. Home sales were weaker. Office vacancy rates were stabilizing.

• Dallas: Manufacturing was weak but showed signs of picking up. Retails reported signs of improvement, although sales remained weak. Auto sales slowed. Construction and real-estate activity also was weak. Overcapacity and slack demand plagued the office-space market.

• San Francisco: Travel and tourism picked up, but hotel occupancy, air travel and car rentals were off from last year's levels. Signs of stabilization in high-tech manufacturing sector in recent weeks, with orders and sales rising. Retailers reported stable conditions. Heavy discounting and favorable financing incentives offered in the fourth quarter of 2001 have now largely stopped.