The Federal Reserve recently published their latest issue of the Beige Book.  It is available online.

The following is a brief list of it's overall (national) summary findings (using data as of February 25th):
   
1. Economic activity has slowed since the beginning of the year.  Business activity was weakened, slowed or subdued.

2. Consumer spending reports were generally "downbeat" or unchanged.  Vehicle sales were slow or sluggish.  Retail activity was reported as weak or softening.   
 
3. Tourism generally continued to expand, although with some areas of softening.
 
4. Reports were mixed in nonfinancial service industries. Activity for transportation services was weaker. Temporary staffing also reported mixed demands.

5. Manufacturing was varied but generally subdued, with continued weakness in housing and automotive related industries. Food process was mixed with higher prices lowering demand and manufacturers experiencing slower payments from customers.  
 
6. Commercial market reports were varied but suggesting slowing. Reports were mixed among Districts as to absorption of commercial space. Rental rates were also mixed across Districts, as was construction activity and reports on commercial real estate loan demand.

7. Residential real estate markets remained weaken, and all Districts reported overall (exception was 5% increase of Manhattan co-op and condo markets).  Residential construction declined or remained at low levels. Inventories remained high against low demand.  Demand for new home loans remained low, but refinancing increased. There was some noticeable increase of inquiries regarding homes on the market, with no resultant sales to date. Outlook is for continued weakness in the market through the first half of 2008.
    
8. Business lending increased in some areas and consumer lending activity overall was flat since the last Beige Book.  
 
9. Favorable agricultural performances were reported in much of the country generally due to higher crop prices and favorable weather. However, despite recent rains, conditions for drought-stricken areas in the Atlanta and Richmond Districts remained generally poor. Higher input costs of fuel, fertilizer and feed were potentially impacting future production and incomes.

10. Energy activity was robust with steady or higher prices.  Drilling had declined domestically and declined in the Gulf of Mexico, leaving activity outside the U.S. to drive future growth.
 
11. Businesses contacted reported limited wage pressures, moderate wage increases, and some loosening of labor markets.

12. According to most reports, businesses continued to face rising costs for food, petrochemicals, metals, and energy-related inputs. Transportation costs for most products increased. Businesses were passing various portions of the costs on to consumers.
 
Note: This represents the national summary for ALL districts combined.  The report also provides more detail on each item summarized nationally, as well as reporting by each district on all items.
 

Copyright 2008 by Lawrence Yerkes. All Rights Reserved.