<Todays Economic Data> Beige Book,Factory Orders,NAPM non-mfg.
Lee:
Any thoughts on these data? I heard someone saying the slowdown in manufacturing might be bottoming out.Hardly any inflationary pressures to content with including the wage front.Could this be enough for the FED to ease the rates either in Nov or DEC? I think this should be enough as there are enough evidence now that the economy is not growing beyond its means,if anything it could use some help from Uncle Al and co.
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A closer look at the beige book data from MarketWatch.
Labor markets. The Beige Book said that while low jobless rates and worker shortages persisted, "there were few new reports of intensifying wage pressures." Most shortages involved mid-level managers, skilled trades and construction workers. Dallas was the only district to report a significant "slackening" in demand.
Prices. The Beige Book said prices for raw materials mostly fell while prices for finished good were flat. "The general tone of District reports suggests little, if any, change in retail prices," the Fed also said.
Consumer spending. The central bank said most of the12 Fed districts reported slower retail sales growth, with results "at or slightly below most merchants' expectations." Discounters performed better than tradition retailers, which economists generally see as a sign that consumers are becoming more cautious about spending. Inventory levels of retailers were termed "satisfactory."
Real estate. Growth in residential activity flattened out, but remained at high levels overall. Nonresidential activity also was robust, though several districts reported a decline in "speculative building."
Manufacturing. Eleven of 12 Fed districts said growth had tempered. St. Louis was the lone exception. Most districts said the economic turmoil abroad "was at least partly responsible for softening demand," the Fed said. Production of steel and computer chips and other high-tech equipment suffered most. Auto production, however, was brisk as companies strove to rebuild depleted inventories.
Banking. Low interest rates spurred consumer demand for durable goods and housing, and while business demand for loans remained strong, lenders grew more cautious. Two-thirds of Fed districts reported tightening credit standards. Agricultural banks were especially worried that low commodity prices would hamper farmers from servicing their debt.
The latest Beige Book, prepared by the Chicago Federal Reserve Bank, was based on information collected before Oct 26. The report is used by central bankers in their discussions on U.S. interest rates. The next meeting of the central bank's rate-setting Federal Open Market Committee is Nov 17 |
