Fed Cites Continued Strong Economic Activity
he economy continued to expand in January and February, with most of the 12 Federal Reserve districts reporting increases in economic acivity including freight services, the Federal Reserve said Wednesday.
The Fed made its comments in releasing its regular survey and report on economic activity known as the "Beige Book."
The Fed reported widespread strength was evident in the trucking and shipping industries, with conditions described as “robust” in Cleveland, Atlanta, St. Louis, Dallas and San Francisco, and steady in Richmond.
Demand for transportation services continued to be strong, though some plants had shortened factory hours because of capacity limitations of regional railroads, the report said.
Overall freight demand retained the strong pace seen in recent months, led particularly by strong gains in international shipments.
Trucking reported strong demand and higher profits, with firms indicating they were able to raise prices and pass higher fuel costs through to customers.
Manufacturing activity was reported higher in most districts, although the pace of growth has generally not increased since the last report, the Fed said, with many districts noting strong gains in durable goods manufacturing.
ehicle production remained at a high level, in part because of the strength in demand for heavy trucks, the report said.
The Beige Book is released eight times a year from information compiled by each of the Fed's 12 district banks. The current report was prepared by the New York Fed and based on information collected through Feb. 28.
