Beige Book Summary
The following is a district by district summary of economic conditions from the beige book report.
Boston: Mixed business conditions continued. Manufacturers generally reported solid demand growth, except for housing-related items. Retail results were varied. Residential real estate markets remained soft. Commercial real estate kept getting better on the rental side but softened on the investment side. Contacts mentioned price increases for selected inputs.
New York: The economy expanded at a moderate pace. Price pressures remained steady. The labor market has generally been stable and tight. Manufacturers report ongoing expansion in early October. Retailers indicated sales were on or below plan; New York City said sales have been relatively strong. Housing markets were mixed, with Manhattan firm and New Jersey and other areas soft. Office markets in the New York City area were steady to stronger.
Philadelphia: Business activity expanded in September. Manufacturers reported increases in new orders and shipments. Residential real estate demand remained weak. Firms reporting on labor costs generally noted a continuing trend of moderate increase in wages but several said increases in health care benefits costs were large. Firms reported increases in input costs and output prices in September.
Cleveland: The economy continued to grow but at a slower pace due mainly to weakening manufacturing output. Most homebuilders had a slight uptick in sales. Commercial construction was steady. Retail sales were flat to declining. Demand for business and consumer lending was steady or had increased slightly, reports showed. The mortgage market remained sluggish. Oil production was up slightly.Richmond: Economic activity continued to cool as housing market weakness persisted. Home sales remained sluggish and demand for mortgages softened further. Retail sales continued to pull back. Dry conditions curbed crop yields and delayed winter plantings. Assessments of other sectors were more upbeat. Hiring moderated, but factories added workers.
Atlanta: The economy remained mixed. Merchant sales were described as modestly higher. Vehicle sales improved for some fuel-efficient models but other sales were generally disappointing. Tourism reports were positive. Home sales and construction kept declining. Manufacturing slowed. There were indications of tighter mortgage lending standards and higher foreclosure rates. Florida contacts noted the overall pace of hiring had slowed. Reports on prices were mixed. Drought conditions hurt crops.
Chicago: The economy expanded modestly. Consumer and business spending rose. Residential construction fell. Household lending declined. Labor market conditions were mixed. Manufacturing growth held steady.
St. Louis: The economy expanded moderately. Reports from manufacturing contacts were generally positive and contacts indicated the services sector kept rising. Home sales and construction remained weak. Commercial real estate markets continued to be positive. Lending at a sample of small and medium banks rose from mid-June to mid-September.
Minneapolis: The economy grew modestly. There was expansion in tourism, services, manufacturing, energy, mining, and agriculture. Consumer spending and commercial real estate growth slowed. Residential real estate weakened. Employment growth was mixed. Overall wage increases were moderate. Prices rose for diesel fuel but fell for gasoline and lumber.Kansas City: The economy expanded at a more modest pace. Consumer spending slowed, but tourism remained solid. Manufacturing growth slowed. Residential real estate weakened. Commercial real estate was solid. Energy activity remained strong. Contacts anticipated record farm incomes with high prices and bumper crops. Bankers reported softer loan demand and tightened credit standards amid weaker loan quality. Most price pressures eased slightly. Contacts reported less intense wage pressures and labor market growth has moderated.
Dallas: The economy decelerated in September and early October. It is digesting a reassessment of lending standards and slowdown in homebuilding and residential real estate but there is little evidence of significant effects to the broader district economy. The settling of financial markets spurred some optimism. Manufacturing decelerated. Energy activity and commercial construction were robust. Consumer lending softened.San Francisco: The economy continued expanding during September and early October but showed signs of further deceleration relative to July and August. Price inflation was modest except for substantial increases in food prices. Sales by retailers grew but the pace of growth slowed slightly. Tighter lending standards took a toll in housing markets. Banks noted slower growth in overall lending.