WASHINGTON (AP) — A Federal Reserve survey of business conditions across the United States has found that economic activity was expanding at a modest pace in February.

The Fed survey released Wednesday shows that the central bank's business contacts were expressing optimism last month about a stronger rebound as more COVID-19 vaccines are distributed.

Reports on consumer spending and auto sales were mixed, while overall manufacturing showed moderate gains despite supply-side constraints, according to the Fed survey.

The report, known as the beige book, is based on surveys conducted by the Fed'...