Beige Book:
Almost all Federal Reserve Districts reported signs of improvement or actual increases in economic activity since the last survey. The sole exception was Boston, which described economic activity as mixed. While the overall tone was positive, a few districts expressed qualifications about the pace of the recovery or the strength of their regional economies. Cleveland said its economy continued to improve but cited concerns that the rate of improvement had slowed considerably from earlier in the year. Also, Kansas City and Dallas noted that their economies were still weak despite recent signs of improvement.
Retail sales increased or held steady in most districts, and all districts reported stable or improved manufacturing conditions. Manufacturers' capital spending plans, however, remained limited. Residential real estate activity was strong in most districts, as both home sales and construction increased. Tourism activity also improved in most areas, while other services activity held steady. Demand for bank loans was little changed in most districts, although increases were reported in some regions. Commercial real estate markets remained generally weak, especially in the San Francisco, Dallas, and Atlanta districts, but showed signs of steadying in the New York, Richmond, Chicago, and Kansas City districts. Energy activity continued to ease, and agricultural crops in several districts were damaged by adverse spring weather.
Despite the increases in economic activity reported in many districts, labor markets remained slack and wage and price pressures generally stayed in check. Demand for labor showed signs of firming in several districts but was still reported as weak in others. Except for skilled health care workers, there were very few reports of labor shortages. Also, those districts that mentioned wage pressures described them as minimal. Retail prices were generally flat. Steel producers sharply boosted prices, but most other manufacturers held prices steady despite reports in some districts of higher costs for fuel, steel, and petroleum-based inputs. |
