Federal Reserve Board's Beige Book Indicates General Economic, Manufacturing Improvement
Manufacturing expanded in almost all 12 districts. Metal fabrication and automotive industries showed particularly strong growth. The auto sector will also benefit from increased sales of new cars and light trucks.
Only New York reported a softening in manufacturing, and Dallas said its manufacturing sector was mixed. Chicago, Kansas City, Dallas, and San Francisco improved in the metal fabrication sector, while automotives fared well in Boston, Cleveland, Richmond, Atlanta, and Chicago.
Capital spending also seems to be improving, particularly in Philadelphia, Cleveland, and Kansas City. Manufacturers were overall more optimistic on increased activity. But some sources in Dallas were concerned about a decreased demand from government agencies due to budget cuts.
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