Summary
The Federal Reserve Board issued the much scrutinized Beige Book on November 30, 2011, effective November 18 2011. Overall, across the 12 Federal Reserve Districts, “economic activity increased at a slow to moderate pace since the previous report across all Federal Reserve Districts except St. Louis, which reported a decline in economic activity”. The prior Beige Book was released October 19, 2011, effective October 7, 2011. The Federal Reserve wording, and theme, plus District reports continues positive regarding USA economic activity, recovery, and growth – and the same as the prior report. As always, the Fed Beige Book, officially titled the Summary of Commentary on Current Economic Conditions by Federal Reserve District, is carefully worded.
USA Financial System More positive than the prior report. “Overall bank lending increased slightly since the previous report, and home refinancing grew at a more rapid pace. Changes in credit standards and credit quality varied across Districts”
USA Jobs Nationwide Slightly more positive than prior report. “Hiring was generally subdued, although some firms with open positions reported difficulty finding qualified applicants.”
Economic Conditions Nationwide by Category Based on Information On or Before November 18, 2011:
Consumer Spending: “rose modestly”
Automobile Sales: “increased in a number of Districts”
Travel and Tourism: “showed signs of strength”
NonFinancial Services: “Business service activity was flat to higher”
Transportation: nothing in general reported
Manufacturing: “activity expanded at a steady pace across most of the country”
Residential Real Estate: “activity generally remained sluggish, construction was weak”
Commercial Real Estate: “activity remained lackluster, construction was slow”
Agriculture: “Districts mostly reported favorable agricultural conditions”
Natural Resources: “Activity in the energy and mining sectors increased”
Wages: “remained stable”
Prices: “remained subdued”
Economic Conditions By Federal Reserve District Based on Information On or Before October 7, 2011
Boston: year-over-year revenue increases, but an uncertain outlook
New York: has continued to grow slowly
Philadelphia: returned to a path of slow overall growth
Cleveland: expanded at a modest pace
Richmond: unchanged or slightly improved
Atlanta: expanding at a modest pace
Chicago: moderated
St. Louis: has slowed
Minneapolis: grew moderately
Kansas City: edged higher
Dallas: grew at a modest pace
San Francisco: continued to grow at a moderate pace
Conclusion
This November 30, 2011 Beige Book is a more positive report, compared to the previous October 19, 2011 report and some other reports in 2011. Overall, 10 of the 12 district reports were at least slightly positive: Boston, New York, Philadelphia, Cleveland, Atlanta, Chicago, Minneapolis, Kansas City, Dallas, and San Francisco. Richmond reported a neutral status, “unchanged or slightly improved”. Only 1 of the 12 districts, St. Louis, reported “slowed” economic growth.
