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 July 14th):

1. Economic activity slowed somewhat since the last report.  St. Louis said activity was stable and San Francisco reported little or no growth. Cleveland and Minneapolis reported slight increases in economic activity, while Dallas described growth as steady and moderate. 
 
2. Consumer spending was sluggish or slowing over most of the county due to higher gas and food prices.  Tax rebates boosted sales for some items, such as electronics.   Vehicle sales were poor, especially for SUVs and trucks (with some dealers refusing to accept them as trade-ins), but solid or increasing for hybrid and fuel-efficient vehicles (in the Philadelphia, Cleveland, Chicago, Minneapolis, and Dallas Districts).  Retail inventories were reported as satisfactory. Sales at discount stores were growing in the Philadelphia, Richmond, St. Louis, Dallas, and San Francisco Districts, and New York reported brisk sales in New York City.
 
3. Tourism was mixed.  By contrast, tourist activity to mountain areas of the Richmond, Minneapolis, and Kansas City Districts was characterized as stronger, possibly due to residents vacationing close to home due to high gasoline prices. New York reported strong tourism activity in New York City, including for Broadway shows and at Manhattan hotels. 

4. Reports were mixed for non-financial service industries with strengths in IT and heath care industries offestting weaknesses in others. Most services contacts expected flat activity heading forward. 
 
5. Manufacturing activity declined or remained weak in most Districts, with exceptions of Cleveland, St. Louis, and San Francisco reporting stable or slightly increasing activity. Housing related products continuued to decline.  St. Louis noted increased demand for small and hybrid type cars.  Energy related equipment saw increased demands, including increases in orders for wind turbine parts.   Food processing was operating at or near peak capacity with persistant demand.  Export market still strong with some reports of slowing. 
 
6. Commercial real estate activity weakend or remained sluggish in most of the Districts. Vacancies were increasing, but office rents remained stable in Philadelphia.  Minneapolis District noted rent increases and positive absorption in the Minneapolis-St. Paul area office market.
 
7. Residential real estate markets declined or remained weak in all districts.  New home construction continued to decline with Philadelphia seeing a rise in cancellations. Inventory levels of new and existing homes were still high or rising, with a few exceptions. 
 
8. Lending growth was restrained, with residential showing more weakness than commercial lending. Banks loan quality showed deterioration.
 
9. Crop conditions were generally mixed.  Districts were concerned that rising input costs were eating into profit margins.
 
10. Energy activity strengthened.  Oil producers reported increases in oil and gas drilling, including unconventional sources. 
 
11. Employment hiring was unchanged or slightly weaker since last report.   Demand remained high for skilled workers and for workers in the energy sector.
 
12. Businesses contacted reported increases in input costs since the last report and expect higher prices in the future.  However, sluggish demand is making it difficult to raise prices in areas such as Philadelphia.
 
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.