Unusually cold weather across much of the U.S. obscured data on economic conditions in January and February, according to the Federal Reserve's Beige Book.

The Beige Book said that eight of the 12 Fed districts reported that economic conditions continued to expand though February 24, but housing growth slowed somewhat in a number of districts.

The outlook among most districts remained optimistic despite a winter lull that may have been caused by severe storms and brutal cold, particularly in the heavily-populated Northeast.

Retail sales growth weakened since the previous report for most Districts, as severe winter kept shoppers at home, the Fed reported.

Manufacturing activity expanded at a moderate pace from January through early February in most Districts. Several Districts reported that severe winter weather had a negative effect on sales and production during this period, including Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, and Dallas.

The weather was cited to have caused utility outages, disrupted supply chains and production schedules, and resulted in a slowing of sales to affected customers.

Energy production was rising on increased demand for heating fuel.

The Beige Book is unlikely to change the Fed's plan to taper their $65 per month buying plan when it meets March 18-19.

RTTNews