Richmond Fed says Carolinas' business activity improved in December

The Federal Reserve Bank of Richmond said Thursday that business activity increased steadily in North and South Carolina this month, jumping for the second month in a row.

But labor demand remained weak, and expectations for six months out remain steady, the Richmond Fed said in its monthly Carolinas Survey of Business Activity.

"Despite an apparent upturn in general business activity, firms remained reluctant to hire," the report said.

The survey is sent out monthly to 160 businesses who collectively match the profile of the two states. Typically about half respond.