Economic activity increased in each of the twelve Federal Reserve Districts between mid-February and the end of March, with the pace of expansion equally split between modest and moderate. In addition, the pickup was evident to varying degrees across economic sectors.
Manufacturing continued to expand at a modest to moderate pace, although growth in freight shipments slowed slightly. All ten contacted manufacturers said sales were higher in recent periods versus the comparable period a year ago. Most contacts reported that capital expenditures were confined to maintenance of existing equipment. Several contacts expressed concerns about policy uncertainty. Firms said that a Border Adjustment Tax would have mixed effects but hoped for some resolution.