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Electricalmarketing 190 20141017embeige1getty72527969
Electricalmarketing 190 20141017embeige1getty72527969
Electricalmarketing 190 20141017embeige1getty72527969
Electricalmarketing 190 20141017embeige1getty72527969
Electricalmarketing 190 20141017embeige1getty72527969

Modest Growth Widespread with Strength in Commercial Construction, Manufacturing

Oct. 17, 2014
Business is plugging along throughout most of the United States, as it has for the past few months, according to the latest report on economic conditions by the Federal Reserve. Modest to moderate growth was prevalent across the Fed’s 12 districts, a result similar to conditions shown in the previous edition of the Beige Book.

Business is plugging along throughout most of the United States, as it has for the past few months, according to the latest report on economic conditions by the Federal Reserve. Modest to moderate growth was prevalent across the Fed’s 12 districts, a result similar to conditions shown in the previous edition of the Beige Book.

Manufacturing activity increased in most Fed districts since the previous Beige Book, and contacts in Boston, Philadelphia, Atlanta and Kansas City reported positive near-term outlooks. New York district manufacturers, on the other hand, reported that growth  had stalled and Boston contacts cited weaker results than earlier in the year. Within the manufacturing sector, there was growth in a broad range of product sectors: steel in Cleveland, Chicago and San Francisco; aerospace in Chicago and St. Louis; construction materials in Philadelphia, Cleveland, Chicago and St. Louis; energy equipment in Philly and Cleveland; medical equipment in Richmond and San Francisco. Food production and processing appeared to be a contrary indicator with flat demand, layoffs and plant closures at food processing plants and weaker demand for agricultural and mining equipment.

Construction was mixed on the residential side but commercial construction grew in most parts of the country. Single-family construction was sluggish in some areas of the New York district, but multi-family construction increased. Philadelphia reported only slight growth in home construction. Single-family starts in the Cleveland district reached their highest level so far this year, though the number of starts year-to-date remained slightly lower than last year. Richmond noted that residential construction across the district increased slightly for custom homes. Atlanta reported that multifamily construction continued to increase across much of the district, while Chicago indicated that both single- and multi-family construction continued to expand.

Commercial construction saw increases in Richmond, St. Louis and San Francisco and commercial contractors in Atlanta saw an increase across many property types. In Cleveland a majority of commercial contractors saw increased construction activity relative to a year ago.