Though there are some signs of improvement, economic conditions are mixed in the Federal Reserve's Eighth District, which includes Springfield.
Manufacturing activity in particular increased in the Fed’s latest Beige Book report, released March 5.
Specifically, there were more manufacturing contacts that reported plans to expand or start operations and add jobs in comparison to contacts that reported slow order volumes and no plans to expand employment. Expansions were cited in the auto, furniture, HVAC, plastic and metal products sectors, but some firms, including one in animal slaughtering and processing, announced closures that will result in job losses.
Home sales also were mixed in the district, with small gains reported in areas such as St. Louis, but residential construction continued to decline throughout much of the district.
There also were declines in the financial sector, with several banks indicating a moderate decrease in lending, and the services sector, where contacts in business support, transportation/warehousing and medical services announced large job cuts.
In retail, contacts reported a year-to-year sales drop in January and early February compared to 2009. About 52 percent of retailers reported decreased sales, with 32 percent reporting increases and the remainder indicating flat sales. More than half of retailers, or 53 percent, said sales levels met their expectations, with lower-priced items and men’s apparel as strong sellers.
The sales outlook for March and April, however, was mostly positive, with about 54 percent of retailers expecting more sales compared to 2009. Car dealers in the district also are expecting positive change in March and April, with about 68 percent expecting more sales compared to the same period last year.
The Beige Book, released eight times a year, is an anecdotal survey of contacts in a variety of industry sectors.
