Fed sees continued economic improvement

NEW YORK (CNNMoney.com) -- The economy continued to show modest signs of improvement in recent weeks, although growth was hindered somewhat by bad weather, according to the latest Federal Reserve snapshot of regional economic conditions. Economic activity improved in nine of the central bank's 12 districts, the Fed said Wednesday in the March edition its Beige Book. But activity was hampered in several districts, most notably Richmond, due to severe snowstorms in early February.

"The stabilization of the economy continues," said Doug Roberts, chief investment strategist for Channel Capital Research. "However, the recovery seems to be tenuous."

The Fed said that consumer spending improved slightly in many districts since the last survey, which was published in January.

The services sector also improved, led by health-care and information technology firms. Manufacturing activity strengthened in most regions, with gains in the high-tech equipment, automobile, and metal industries.

Real estate: Residential real estate continued to improve in many regions, although several districts said activity was hurt by extreme winter weather.

Commercial real estate and construction activity was weak or declined in many parts of the country, but some districts reported slight stabilization and a few signs of modest improvement.

The snow storms that crippled much of the Northeast and parts of the South in February also took a toll on agricultural activity, according to the report.

The Fed said demand for loans remained weak, and lending standards continue to be tight across the country. Consumer prices were tame, despite some increases in the costs of raw materials.

Jobs: The job market remained sluggish throughout the nation, the Fed said. But some districts reported an uptick in hiring or a slowdown in layoffs. In Dallas, for example, staff levels ticked up at some energy service, food, high-tech and transportation manufacturing firms.