U.S. Federal Reserve Beige Book: Philadelphia District (Text)

The following is the text of the Federal Reserve Board’s Third District-- Philadelphia.

Business activity in the Third District has improved overall since the last Beige Book. Manufacturers reported strong increases in shipments and new orders in February. Retailers achieved modest year-over-year increases in sales in January and February. Motor vehicle dealers also reported year-over-year sales increases in February. Third District banks reported little overall change in loan volume outstanding since the last Beige Book, although business loan and residential mortgage volumes edged up, while consumer loan volume eased. Residential real estate agents and homebuilders indicated that activity, which was already at a seasonal low along a low part of the business cycle, was dampened further by poor weather. Contacts in the commercial real estate sector said that leasing and construction activity have remained at low levels since the last Beige Book. Service-sector firms reported that activity has increased modestly. Business contacts reported still more instances of price increases for inputs than they did in the previous Beige Book, and output price increases emerged in February as reported by contacts in several sectors.