Some cities improving, survey finds.

As cities continue to deal with difficult economic conditions, some signs point to an uptick in business and economic activity, according to a survey by the National League of Cities. Responses to the Local Economic Conditions survey highlight the continuing challenges posed by the recent recession as well as indicating a degree of stabilization in the U.S. economy

The retail sector is improving, according to 45 percent of respondents; 28 percent also report that business permits and licenses are picking up. Additionally, 35 percent of officials reported increased investments in new infrastructure and capital projects during the past six months.

Local economies are still feeling the effects of the recession, however. About 50 percent of officials reported that residential property values have worsened over the past six months, while 44 percent reported that commercial property values have worsened, and 41 percent reported that the demand for survival services including food banks and shelters has worsened.

In the face of these hardships, municipal bond activity and municipal rolling...