Across the 12 U.S. Federal Reserve districts, overall economic activity expanded at "a moderate pace" during
the reporting period from late February to early April, according to a Federal
Reserve report released this month, and "travel and tourism expanded
across most reporting Districts, boosted by both business and leisure travel."
"Business travel
remained robust in the Boston, Atlanta and Minneapolis Districts, and foreign
visitors continued to boost convention travel according to the Atlanta district,"
according to the report.
Also in Atlanta,
"hospitality contacts reported healthy activity in both leisure and
business travel. Although government and business bookings decreased due to
location restrictions and/or budgetary constraints, overall demand remained
healthy."
The lodging market also
fared well in Manhattan, where revenue per room during February and March
increased year over year by "nearly 15 percent, driven by a combination of
high and rising occupancy rates and escalating room rates." Meanwhile,
according the Fed report, hoteliers in North Carolina expect to raise transient
rates this year "by 3 percent to 6 percent, but they anticipated a decline
in government-rate bookings as a result of sequestration."
Overall, most districts
reported growing manufacturing activity during the reporting period, with
"particular strength tied to residential construction and automobiles."
The report also noted that demand for non-financial services "increased at
a modest pace, and several districts noted growth in freight and transportation
services." Oil and natural gas activity generally "remained
robust," while consumer spending overall "grew modestly."
Defense-related sectors, however, showed "uncertainty or weakness."
Moving forward, the Fed's
sources "remained optimistic across sectors and districts, with growth
mostly expected to continue at the same or a slightly improved pace. Some
uncertainty remained, primarily regarding fiscal policy and health care reform."