Fed Beige Book is out, and it is not surprising that the report was mixed. In four markets, there was a significant relief. In two of the lack of change, and modest growth in others.
The bottom line: this is what should be expected, if you have to pay attention to the latest data.
Economic activity has continued to increase, on balance, since the previous survey, although Cleveland and Kansas City districts reported that the level of economic activity, which is usually held constant. Among those reporting an improvement in the areas of economic activity, a number of them pointed out that the increases were modest, and two, Atlanta, Chicago, said that the pace of economic activity has slowed recently.
Manufacturing activity continued to expand in most districts, although many of the areas and stated that this activity has slowed or stabilized during the reporting period. He also noted areas of improved conditions in the services sector. It noted the five constituencies reporting an increase in transport activity. Increased tourist activity also through the circles, although the Atlanta area and noted concerns about the decline in tourism to the Gulf Coast. According to reports of retail sales generally continued rise in spending, and pointed out that many areas are still strong sellers necessities, while big ticket items moved more slowly.
However, most areas reported a decline in car sales noted in recent weeks. The activity in residential real estate markets in most areas has been slow after the April 30 deadline for the homebuyer tax credit. Markets remain commercial real estate, construction in particular, and weakness. Banking conditions varied across Districts, with some areas, adding soft or decreased the total demand for loans, and credit standards remained tight in most reporting areas.
The recent rainfall varying effects on crop conditions, while activity in the sector of natural resources increased. Overall labor market conditions improved modestly over the circles, with several reports of the temporary hiring. Held consumer prices for goods and services is fixed in most areas of the reports. Input prices also held fairly steady, with only a few reports of the increase in costs. Continued pressure on wages are present in general.
