Washington, April 14 (IANS/EFE) Last month's magnitude-9 earthquake and tsunami in Japan may have had a greater than expected impact on the US economy, the Federal Reserve Bank said Wednesday.

"Boston, Philadelphia, Richmond, Atlanta, Chicago, Minneapolis, and Dallas all noted actual or expected disruptions to sales and production as a result of the tragedy in Japan," according to the Beige Book, an appraisal of current economic conditions based on anecdotal information from the Fed's 12 regional banks.

Overall, the Federal Reserve Bank says, the economy continued to improve in the first half of March.

Growth was due mainly to the strength of the manufacturing sector and an improvement in the labour market in most of the 12 regions.

"Consumer spending picked up modestly...since the last report," the Beige Book says, also noting a broad increase in auto sales.

While tourism was up in six of the 12 regions, Hawaii saw a significant drop in arrivals after the devastating quake in Japan, traditionally the leading source of foreign visitors to the island.

The banking and financial sector presented a mixed picture.