Jacob Miller
3/28/2011
Third district report Third District-Pheledelphia Business activity in the Third District has improved overall since the last Beige Book. Their was a strong increases in shipments and new orders in February.Third District banks reported little overall change in loan volume outstanding since the last Beige Book.Contacts in the commercial real estate sector said that leasing and construction activity have remained at low levels since the last Beige Book.The outlook among Third District business contacts is positive but not strong. Bankers expect only slight growth in lending over the next two quarters. Contacts in commercial real estate expect market conditions to improve slowly during the year.

Manufacturing Third District manufacturers reported strong increases in shipments and new orders from January to February.Producers within the furniture, petroleum, and fabricated metals sectors reported no overall change in demand.Third District manufacturers expect business conditions to improve during the next six months.Among the firms surveyed in February, about half expect increases in new orders and shipments, and less than one-tenth expect decreases.Capital spending plans among area manufacturers remain positive, but lessened somewhat over the past two months, mostly from January to February.

Retail Third District retailers generally reported modest year-over-year increases in sales in January and February. Snowstorms deterred shopping and limited the advance in sales in January, retailers said, but most of those contacted for this report indicated that sales rebounded in February.The consensus among merchants in the region is that sales will continue to grow as the spring selling season gets underway. Auto dealers anticipate sales this year to exceed sales last year, although some remained concerned