The Eleventh District economy expanded at a moderate pace over the past six weeks. While many respondents noted steady demand, there were more noting improving versus declining demand. Sales grew for firms in residential construction, retail, accounting, fabricated metals, food and kindred products, and automobile dealerships. Financial firms and paper producers reported a decline in demand. The energy sector noted some flattening of activity at high levels. Drought continued to plague the region although recent rains have slightly improved growing conditions in some areas.
Most responding firms said that prices were stable since the last report. Contacts in oil, paper and beef production reported slight increases in prices while law firms and retailers noted slight price reductions. Fabricated metals producers and accounting firms said that increasing cost pressures may result in price increases in the coming months. Contacts in the residential housing sector noted that overall home prices in most major metros continued to rise at a moderate to fast pace.
Read more...Dallas Beige Book - Dallas Fed