The U.S. Federal Reserve’s Beige Book is out this afternoon, adding more fuel to recovery hopes.

The report, using data collected by the Fed’s district banks, comes out eight times a year and is a key resource at the Fed’s policy-setting meetings.

Most Fed districts report some signs of improvement in economic conditions in January and early February. The Boston, Philadelphia, Richmond, Atlanta, Minneapolis, and San Francisco districts note some pickup in activity, Chicago cites a more positive tone, and Kansas City and St. Louis say that economic activity is weak, but there are some bright spots.

Cleveland indicates that although some positive signs continue to emerge, overall business conditions in the district have neither improved nor deteriorated compared with the end of last year. New York reports mixed signals, and Dallas notes continued weak activity.

Most districts say that manufacturing activity is generally weak, but selected industries in some areas are showing more positive results. Labor markets continue to be slack in most districts, with many citing business contacts who have suspended bonuses, frozen wages, or skipped annual salary increases. However, temporary employment firms suggest employment is bottoming out, and new hires in selected occupations are in short supply. Wage and price pressures are described as “subdued”.

Most districts report that retail sales during January and February were unchanged from a year earlier, but several noted improvement in early 2002 compared with late 2001. Manufacturing activity is reported to be generally weak but showing signs of improvement in at least some industries. Although services industries were mostly sluggish or flat in recent months, selected industries reported improvements. Loan demand is generally mixed. Real estate markets are mixed, with commercial markets almost universally said to be weak while the residential segment remains strong.