U.S. economic activity expanded or remained steady in all 12 Federal Reserve districts, according to the latest version of the Beige Book released Wednesday afternoon. Eight Fed districts characterized growth at modest or moderate, one reported that economic activity continues to expand, one reported a slight pace of growth, and two said economic conditions were steady.

Consumer spending was up in a majority of districts due to consumer savings on energy costs. The other side of that particular coin is that job losses in the Cleveland, Atlanta, Minneapolis, Kansas City and Dallas Fed districts (among others) were due to the decline in oil and natural gas prices. The Dallas district reported:

Oil and gas producers and oilfield service firms continued to cut their workforce as low oil prices forced deeper cost cutting, although many contacts expressed confidence that industry employment declines will be temporary.

The better news on the employment and wage front is that firms in several Fed districts reported having difficulty finding skilled workers, especially in professional and business services and the IT sector. Modest or moderate upward wage pressure was reported in several districts, indicating that wages may have to rise in order to fill jobs for which employers have had trouble locating good candidates.

Demand for manufactured goods was mixed, with gains in the aerospace industry and in the auto industry. The strong dollar weakened demand in some Fed districts (Boston, Cleveland, Chicago and Dallas), and one Boston firm pointed out that the changing value of the dollar increases incentives to minimize inventories.

Residential real estate activity picked up seven Fed districts, remained steady in four others and fell in just one (New York).

Agricultural conditions have deteriorated due either to fields too wet to plant, persistent drought or cold winter weather. Export demand for pork has fallen and a virus outbreak among turkeys has killed thousands of birds.

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