The Federal Reserve released the latest edition of its so-called Beige Book on Wednesday. Unlike the Federal Open Market Committee minutes, the report is not representative of the Fed’s views; instead, it “summarizes comments received from businesses and other contacts outside the Federal Reserve”.
The report, which reflects information gathered between mid-July and late August, will be used as a reference point at the next meeting of the FOMC on September 22 and 23.
Some quick takeaways, any emphasis FT Alphaville’s:
Reports from the 12 Federal Reserve Districts indicate that economic activity continued to stabilize in July and August. Relative to the last report, Dallas indicated that economic activity had firmed, while Boston, Cleveland, Philadelphia, Richmond, and San Francisco mentioned signs of improvement. Atlanta, Chicago, Kansas City, Minneapolis, and New York generally described economic activity as stable or showing signs of stabilization; St. Louis remarked that the pace of decline appeared to be moderating. Most Districts noted that the outlook for economic activity among their business contacts remained cautiously positive.
The majority of Districts reported flat retail sales. Richmond, Philadelphia, Chicago, Atlanta, and Boston remarked that retailers continued to carefully manage inventories, keeping them in line with low sales levels. A majority of Districts confirmed that the “cash-for-clunkers” program boosted traffic and sales. Richmond, Atlanta, Chicago, and Minneapolis also noted increases or planned increases in automobile-related production. Most regions reported some improvement in residential real estate markets. Downward pressure on home prices continued in most Districts, although Dallas and New York noted that local prices were firming. Reports on commercial real estate suggest that the demand for space remained weak and that nonresidential construction-related activity continued to decline… Loan demand was described as weak and many Districts reported that credit standards remained tight… Labor market conditions remained weak across all Districts.
Related links:
Optimistically, pessimistic in the US – FT Alphaville
Fed sees signs of economic improvement – FT