>>> Fed Beige Book Summary

Fed Beige Book Summary

Overall Economic Activity

  • Economic activity increased in most of the U.S., with eight of twelve Federal Reserve Districts reporting modest to moderate growth.
  • Nonauto retail sales grew modestly, as several Districts reported more holiday traffic compared with last year. Auto sales were flat on balance.
  • The majority of Districts indicated that manufacturing expanded, but that growth had slowed, particularly in the auto and energy sectors.
  • New home construction and existing home sales were little changed, with several Districts reporting that sales were limited by rising prices and low inventory.
  • Commercial real estate activity was also little changed on balance.
  • The energy sector expanded at a slower pace, and lower energy prices contributed to a pullback in the industry's capital spending expectations.
  • The agriculture sector struggled as prices generally remained low despite recent increases.
  • Overall, lending volumes grew modestly, though a few Districts noted that growth had slowed.
  • Outlooks generally remained positive, but many Districts reported that contacts had become less optimistic in response to increased financial market volatility, rising short-term interest rates, falling energy prices, and elevated trade and political uncertainty.

Employment and Wages

  • Employment increased in most of the country, with a plurality of Districts reporting modest growth. All Districts noted that labor markets were tight and that firms were struggling to find workers at any skill level.
  • Wages grew throughout the country, with the majority of Districts reporting moderate gains.

Prices

  • The majority of Districts reported modest to moderate increases in prices.
  • Most Districts indicated that firms' input costs had risen, but reports were mixed on whether they could pass the higher costs on to customers.
  • Reports often cited rising materials and freight prices as sources of cost increases, and a number of Districts said that higher tariffs were also a factor.
  • While prices of most inputs were up, several Districts noted that fuel costs had gone down.
  • A number of Districts reported rising home prices, while prices for commercial and industrial space either increased or were flat. Prices for agricultural commodities were generally somewhat higher.


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