Awwal 28, 1432 H/March 3, 2011, SPA -- U.S. economic activity slowly gained strength as the year began, and manufacturers and retailers were having success increasing their prices, the Federal Reserve (Fed) said in a report Wednesday. "Reports from the 12 Federal Reserve districts indicated that overall economic activity continued to expand at a modest to moderate pace in January and early February," the central bank said in its "beige book" report, named for the color of its cover. While the report indicated a strengthening economy, growth was uneven across the country. In general, wage growth was weak, but businesses were attempting to raise prices to compensate for higher costs of raw materials. "Manufacturers in many districts conveyed that they were passing through higher input costs to customers or planned to do so in the near future," the Fed said. Job prospects "modestly improved across the country," the report said, though in some cases companies wanted to hire only temporary workers instead of creating permanent positions. Real estate remained weak. "Some districts reported a slight increase in the level of residential real-estate activity, although all districts maintained that the overall level of home sales and construction remained low," the central bank wrote.
