Consumer spending was reported to be higher in January and February for nearly all districts with auto sales reported as steady. Manufacturing remains on the decline in most districts, though a few noted some improvement. Labor markets remain tight, though about half of the districts reported signs of loosening. Wage pressures reportedly eased but benefit costs were up. Price pressures are seen as contained outside of energy.
Bank lending is seen as sluggish with many banks tightening lending standards.
As expected, the non-manufacturing NAPM index rose to 51.7 in February from 50.1 in January. The prices paid component edged down to 60.5 from 62.0, but is still in expansion territory. This data series is relatively new so it is hard to draw conclusions from recent data. On the face of it, it appears that the non-manufacturing economy is weakening, though not as dramatically as the manufacturing sector. Orders were weak across the board with only industrial machinery orders showing an increase.