Beige Book–April 15, 2015

Economic activity in the Twelfth District continued to improve moderately during the reporting period of mid-February through the end of March. Overall price inflation was slight, while wage inflation was moderate. Retail sales and demand for business and consumer services increased moderately. Overall manufacturing activity improved modestly on net. The pace of output in the District’s agricultural sector was unchanged. Real estate activity advanced, especially in the commercial real estate sector. Lending activity increased moderately. . . Contacts in the health care industry reported that significant losses by insurers in the wake of health reform generated downward pressure on the price of health care services. Contacts expect significant rate increases for insurance on the health exchange in the fall, as insurance companies attempt to recoup previous losses.