WASHINGTON — The Federal Reserve’s Beige Book report on Wednesday showed expanded economic activity, boosted in large part by robust holiday sales during the period from late November through December.
Seven regions of the country reported growth as “modest,” and of the remaining five, New York and Chicago reported a “pickup” in the pace of growth, while Dallas and San Francisco reported “moderate” growth. Economic activity in Richmond was flat or showing slight improvement.
“Consumer spending picked up in most districts, reflecting significant gains in holiday retail sales compared with last year’s season,” the Fed said in its economic snapshot.
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Retailers in New York and Dallas described sales as “brisk” and “robust,” respectively, and most regions reported holiday retail sales were “up noticeably” over last year’s season.
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The one weak spot in holiday sales was cold-weather apparel, according to most retailers across the country, as unseasonably warm weather dampened sales. Consumer electronics and jewelry were cited as the strongest holiday items across the board.
Several New York retailers said there was “exceptional strength” in online sales, with some reporting year-over year gains in excess of 40 percent.
Rain boots sold well in Philadelphia, but retailers said cold-weather apparel was affected by the mild temperatures. Retailers in Cleveland also reported softness in winter-related apparel and goods, while purchases of electronics and home furnishings were better than expected.
In Richmond, jewelry sales were robust although higher prices for gold and precious gems held sales back somewhat, merchants said.
Retailers in Chicago said consumers increased their online shopping this year, with items such as apparel, electronics, sporting goods, hobby items, books and music selling well.
“Consumers reportedly were making more shopping trips and aggressively bargain hunting to obtain the lowest prices,” the Fed said in its analysis.