Fed’s Beige Book Commentary

  • RETAIL PRICES WERE STEADY IN MOST DISTRICTS
  • MOST DISTRICTS REPORTED TIGHT CREDIT STANDARDS
  • CONSTRUCTION REMAINED AT LOW LEVELS
  • HOUSE PRICES INDICATED DOWNWARD PRESSURES
  • WAGE PRESSURES WERE MINIMAL IN ALL 12 DISTRICTS
  • LABOR MARKETS WERE WEAK IN ALL 12 DISTRICTS
  • REPORTED MANUFACTURING SHOWED MODEST IMPROVEMENT
  • LOAN DEMAND WAS WEAK
  • DEMAND FOR COMMERCIAL REAL ESTATE WAS WEAK
  • RESIDENTIAL REAL ESTATE IMPROVED
  • MOST DISTRICT BANKS REPORTED FLAT RETAIL SALES
  • 12 FED DISTRICT BANKS NOTED SIGNS OF IMPROVEMENT
  • DISTRICT BANKS SAID ECONOMY CONTINUED TO STABILIZE

 

  • Homeowners lost more than $5 trillion in wealth from the collapse of the bubble.
  • Consumer spending was flat, retailers are not adding to inventories, instead keeping them in line with low sales levels.
  • Majority of reports indicated that manufacturers were “cautiously optimistic”
  • Credit remains scare, according to the report.
  • Most districts reported weak loan demand and tight credit standards.
  • Demand for commercial property remained weak and that businesspeople in some areas believed recently higher vehicle sales levels were likely not sustainable after the government’s cash for clunkers" incentive program
  • “Labor market conditions remained weak across all districts, but several also noted an uptick in temporary hiring and a decline in the pace of layoffs.

Source: FXDD, Marketwatch, CNBC & Federal Reserve Board

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