Reports from the twelve Federal Reserve Districts in the central bank’s latest Beige Book report indicated that economic activity continued to expand at a modest pace, though some districts noted mixed or weakening activity.

Manufacturing activity, which had been one of the few drivers of growth during the recovery, slowed in many regions. The New York, Philadelphia, and Richmond Districts reported declining activity overall, and contacts in the Boston and Dallas Districts noted slowing demand from European customers. Cleveland said factory production was stable, and manufacturing activity in the Atlanta and Chicago Districts grew at a slower pace. Minneapolis, Kansas City, and San Francisco reported slight expansions, and St. Louis said activity continued to increase and that several manufacturers planned to open plants and expand operations in the near future. Most manufacturing contacts were less optimistic than in the previous survey; however, future capital spending plans were solid in a few districts.

Residential real estate activity remained weak overall, although a few districts noted some slight improvements. Home construction was down or stagnant in most districts, with the exception of Minneapolis and Kansas City. However, several districts indicated an improvement in home remodeling activity, and the New York, Philadelphia, and Cleveland Districts reported increased demand for multi-family housing projects.

Commercial real estate conditions remained weak or little changed in most districts, although some improvements were noted by New York, Minneapolis, and Dallas. Commercial real estate activity was sluggish and commercial construction was characterized as weak or limited, although Atlanta noted some strength in the healthcare sector.