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Beige Book report shows increase in economic activity for Kansas City district during Jan., Feb.

By Madison Parry

The Kansas City Federal Reserve District for the months of January and February reflected a slight expansion in economic activity, according to the Beige Book report. Healthcare, retail and restaurant sales drove higher consumer spending in January, though pulled back lightly in February.

Economic activity in the Kansas City Federal Reserve District expanded slightly over the last two months, according to the latest Beige Book release from the Federal Reserve System.

The Beige Book is a Federal Reserve System publication about current economic conditions across the 12 Federal Reserve Districts. It characterizes regional economic conditions and prospects based on a variety of mostly qualitative information, gathered directly from each District’s sources. Reports are published eight times per year.

The report showed there were gains in most sectors in Kansas City. January had stronger retail, restaurant and healthcare sales which drove higher consumer spending higher in January, though consumers pulled back in February.

Activity rose in the manufacturing, professional and high-tech services, wholesale trade, residential real estate, energy and agriculture sectors, according to the report, and contacts were generally optimistic about future growth (in part by the COVID-19 vaccine rollout).

Overall economic activity expanded modestly from January to mid-February for most Federal Reserve Districts. Most businesses remain optimistic regarding the next six to 12 months as COVID-19 vaccines become more widely distributed.