The Federal Reserve’s first Beige Book of 2012 described an upbeat atmosphere in most the 12 districts as sales of new vehicles continued to pick up as last year closed.

Among the most favorable reports, federal officials highlighted that Atlanta saw the pace of sales in November and December as “the strongest in over two years.

Furthermore, strong demand and sales were reported as well by New York, Philadelphia, Cleveland and Minneapolis.

Before the Fed broke down activity in each of the 12 districts, it shared broad commentary about the U.S. economy.

“Contact reports from the 12 Federal Reserve Districts suggest that national economic activity expanded at a modest to moderate pace during the reporting period of late November through the end of December,” officials indicated.

“Seven districts characterized growth as modest,” they continued. “Of the remaining five, New York and Chicago noted a pickup in the pace of growth, Dallas and San Francisco reported moderate growth and Richmond indicated that activity flattened or improved slightly.

“Compared with prior summaries, the reports on balance suggest ongoing improvement in economic conditions in recent months with most districts highlighting more favorable conditions than identified in reports from the late spring through early fall,” officials went on to note.

Boston

While the auto sector wasn’t mentioned specifically, the Fed offered positive reaction from Boston contacts.

“Most business contacts in the First District report modest revenue growth from a year earlier,” officials stated.

“Retailers are somewhat more positive than in preceding months with 2011 sales projected to come in higher than 2010,” they added.

New York

The Fed found dealers in the Second District reported that sales have remained strong since the last Beige Book, which was published back on Nov. 30.

“The Second District’s economy has grown at a somewhat faster pace since the last report, led by brisk holiday-season spending,” officials discovered.

“Labor market conditions, as well as prices, have remained generally stable. Manufacturers report modestly improved general business conditions and steady employment since the last report, along with increased optimism about the near-term outlook,” they stated.

“Retailers generally characterize holiday season spending as robust, particularly in the final days before Christmas and right after,” they added.

Philadelphia

According to the Federal Reserve, dealers in the Third District experienced further strong sales growth and strong pricing power, overcoming some of the typical “seasonal drag.”

Looking at the situation overall, officials added banks have reported slight growth in loan volume outstanding, and, “Overall business activity in the Third

District has continued to grow modestly since the previous Beige Book, with various sectors experiencing typical seasonal patterns — positive and negative.”

Cleveland

The most Fed commentary connected with the auto industry derived from the Fourth District.

Officials found dealers reported that new-vehicle sales during November remained strong. On a year-over-year basis, sales volume was largely higher.

“Dealers saw robust demand for all vehicle types,” officials relayed. “A few dealers noted that their inventories are now adequate. Others said that inventories are low, which they attributed to brisk sales.”

The Fed even discussed what dealers in this district are expecting this year.

“The outlook for 2012 is somewhat tentative, mainly because of uncertainty,” officials acknowledged.

“Purchases of used vehicles have fallen off slightly, due in part to a supply shortage,” they continued. “We heard reports about some easing of credit restrictions, while interest rates were very competitive.

“Dealers are investing in manufacturer-mandated facility upgrades and imaging programs,” they went on to say. “The few dealers looking to hire reported that it is difficult to find qualified candidates, especially sales representatives and service technicians.”

Richmond

While contacts generally called the retail atmosphere in the Fifth District mixed, dealer activity helped to push things toward a positive direction.

The Fed indicated several dealers reported higher sales of used and new vehicles during the reporting period.

“District economic activity generally flattened or improved slightly since our last report,” officials added.

Atlanta

As mentioned earlier, the Sixth District generated some of the most upbeat commentary of this latest Beige Book

“Dealers indicated that sales continued to be strong because of pent-up demand and are better positioned to obtain financing,” officials discovered.

“The pace of sales during early November and December was reportedly the strongest in over two years,” they continued.

Despite Sixth District business contacts describing economic activity as expanding at a modest pace from late November through December, officials acknowledged future “expectations remained guarded.”

Chicago

More positive dealer drumbeats emanated from the Seventh District as the Fed said vehicle sales increased since the last reporting period.

“Dealers reported that showroom traffic volumes were up, and many expected sales to continue to improve further in 2012,” officials mentioned.

The Fed added district contacts were generally optimistic about the economic outlook for 2012, but “many also expressed concern about potential weakness in demand from abroad, particularly from China and Europe.”

St. Louis

Two specific kinds of vehicles generated the most activity in the Eighth District.

“Dealers reported strong sales of luxury automobiles and pickup trucks,” officials shared.

The Fed also noted the economy of the Eighth District grew at a “modest pace” since its previous survey.

Minneapolis

Contained within the Ninth District discussion, the Fed found a domestic auto dealers reported strong sales in December.

Officials added overall economic activity within the district picked up at a “modest pace” since the last survey.

Kansas City

Contrary to much of the rest of the country, dealer activity softened in the 10th District.

“Following several months of strong activity, auto dealers reported a dip in sales with slower sales expected in coming months,” officials determined.

“Auto inventories increased over the previous survey period, and most dealers reported satisfaction with current levels,” they continued.

“Many District contacts attributed the weakness in spending to ongoing regulatory and political uncertainty,” they added.

Dallas

Like the Fourth District, contacts in the 11th District were eager to discuss the auto sector.

“Automobile sales held steady from the prior report and have increased year-over-year. The used-car market remains tight,” the Fed revealed.

“Contacts expect 2012 will be another good year with moderate increases in sales,” officials continued. “Vehicle inventories are back to normal levels for the most part, although some contacts reported light inventories due to increased activity.”

San Francisco

Rounding out the latest Beige Book was an update on the 12th District.

“Sales of new automobiles rose further overall during the reporting period, although slightly softer demand was noted for the last few weeks,” officials learned.

“Demand for used vehicles remained robust, and dealers reported marked improvement in the quality of trade-ins compared with earlier in the year,” the Fed concluded.