The Federal Reserve reports in its Beige Book that twelve Federal Reserve Districts suggest that economic activity continued to expand moderately from November through December. Conditions were said to be improving in the Boston, New York, Philadelphia and Richmond Districts. Activity increased modestly to moderately in the Cleveland, Atlanta, Chicago, St. Louis, Kansas City and Dallas Districts. The economy of the Minneapolis District “continued its moderate recovery,” while that of the San Francisco District “firmed further” in the reporting period leading up to the close of 2010. Conditions were generally said to be better in Districts’ manufacturing, retail and nonfinancial services sectors than in financial services or real estate. The manufacturing sector continued to recover across all Districts. Contacts in the Richmond, Chicago, and St. Louis Districts identified a strong flow of new orders. Activity in residential real estate and new home construction remained slow across all Districts. A majority of the Districts, including Boston, New York, Cleveland, Atlanta, Chicago, Minneapolis, Dallas and San Francisco characterized local housing markets as weak and sluggish with little change from the previous reporting period. Reports on credit activity were mixed across Federal Reserve Districts. Overall, loan demand was reported as stable in San Francisco, mixed in New York, steady to slightly softer in Kansas City, weaker in St. Louis and Dallas, and slowly improving in Philadelphia and Richmond. Demand for consumer loans declined in the New York, Cleveland, St. Louis, Kansas City, and San Francisco Districts. By contrast, consumer lending increased in the Dallas District, and exceeded expectations in the Chicago District. Bankers in Philadelphia, Cleveland, and Richmond anticipate consumer lending to expand in 2011.