NEW YORK – The Federal Reserve’s Beige Book reported modest improvement in economic conditions since the previous report, with eight districts reporting improvement and the remaining four -- Philadelphia, Cleveland, Richmond, and Atlanta – reporting conditions little changed and/or mixed.
Consumer spending picked up moderately, with a number of districts reporting relatively robust sales of used autos. Most districts said non-auto retailers were holding lean inventories going into the holiday season.
“Manufacturing conditions were said to be, on balance, steady to moderately improving across most of the country, while conditions in the nonfinancial service sector generally strengthened somewhat, though with some variation across districts and across industries,” according to the report.
Residential real estate improved somewhat, with most districts reporting some pickup in home sales, though prices were generally said to be flat or declining modestly; residential construction was weak, but some districts saw some pickup in activity. “Commercial real estate markets and construction activity were depicted as very weak and, in many cases, deteriorating,” the report noted.
“Financial institutions generally reported steady to weaker loan demand, continued tight credit standards, and steady or deteriorating loan quality. In the agricultural sector, the fall harvest was delayed in the eastern half of the nation due to excessively wet conditions during October and early November,” the Beige Book reported. “Most energy-producing Districts noted a slight uptick in activity in the sector since the last report. Labor market conditions remained weak since the last report, though there were signs of stabilization and scattered signs of improvement. While some Districts reported upward pressure on commodity prices, they saw little or no indication of upward wage pressures or of any significant increase in prices of finished goods.”
