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Regional Fed reports

By ASSOCIATED PRESS
Published June 15, 2006

The economy flashed signs of slower growth heading into the summer but that did not help alleviate inflation concerns, according to a Federal Reserve survey released Wednesday of the business climate around the country. In four of the 12 Fed districts surveyed - Atlanta; Kansas City, Mo.; Richmond, Va.; and San Francisco - economic activity moderated. In Boston, Chicago, Cleveland, Dallas, Minneapolis, New York and St. Louis, economic growth was about the same as in the Fed's last report, from April. Only the Philadelphia district reported better conditions.

BOSTON: Manufacturers and software and information technology companies indicated revenues were up solidly from a year ago. Retailers' results were mixed.

NEW YORK: Businesses report widespread cost pressures but thus far there has been no broad acceleration in consumer prices. Retailers reported mixed sales results. Tourism improved. Housing markets showed further signs of cooling.

PHILADELPHIA: Manufacturers reported activity increased. Retail sales of general merchandise rose, but auto sales declined. Merchants indicated they have raised retail prices significantly for some goods with large plastic or metal content. Residential real-estate activity slowed and demand for residential mortgages has softened.

CLEVELAND: Most manufacturers reported increased production. But production fell at auto assembly plants. Retailers generally reported improved sales trends. Discount stores indicated sales were weaker than expected as high gasoline prices pinched shoppers. Some types of skilled workers were in short supply.

RICHMOND: Economic activity grew more slowly. Housing markets continued to soften and demand for home mortgages ebbed. Retailers' sales grew at a slower pace. Tourism picked up. Manufacturing activity flattened.

ATLANTA: Merchants near Hurricane Katrina-damaged areas reported strong sales because of the influx of evacuees. The weakest retail report came from discount stores and restaurants. Auto sales were mixed. Housing construction mostly held steady. But sales weakened in Florida, especially in the condominium market. Businesses reported rising prices, especially for energy and building materials. But they had mixed success in boosting customers' prices to recover some of these higher costs.

CHICAGO: Consumer spending increased modestly. Manufacturing activity remained strong and shortages of skilled factory workers persisted. Housing construction softened and demand for home mortgages was down. Businesses reported higher energy costs.

ST. LOUIS: Retail sales were down from a year ago. Car sales also were down. Manufacturing expanded modestly. Home sales dropped in most of the district. In agriculture, planting of major crops is ahead of pace in most areas.

MINNEAPOLIS: Consumer spending, manufacturing, tourism, construction, mining, energy, agriculture and commercial real estate all saw increased activity. Residential real estate activity, however, softened. Significant price increases were noted for fuel, health insurance and some construction materials.

KANSAS CITY: Manufacturing expanded strongly and companies reported higher prices for raw materials. Consumer spending expanded moderately. Residential construction declined a bit, while commercial real estate activity edged up.

DALLAS: The energy industry remains strong. Recent weakness in natural gas prices has not curtailed exploration. Retail sales growth weakened a bit. Manufacturing and service sector activity was brisk. The housing market softened slightly. Rising costs are pushing up selling prices for many industries.

SAN FRANCISCO: Semiconductor sales expanded and aircraft orders grew, but demand for supplies commonly used for home building ebbed. Retail sales grew modestly. Residential real estate activity continued to lose momentum, but demand for commercial real estate picked up.

[Last modified June 15, 2006, 06:35:14]