Abridged Beige Book

"Relative to the last report, Dallas indicated that economic activity had firmed, while Boston, Cleveland, Philadelphia, Richmond, and San Francisco mentioned signs of improvement. Atlanta, Chicago, Kansas City, Minneapolis, and New York generally described economic activity as stable or showing signs of stabilization; St. Louis remarked that the pace of decline appeared to be moderating...

...Downward pressure on home prices continued in most Districts, although Dallas and New York noted that local prices were firming. Reports on commercial real estate suggest that the demand for space remained weak and that nonresidential construction-related activity continued to decline. San Francisco, Philadelphia, and St. Louis noted that the demand for nonfinancial services remained soft, although the pace of the decline was described as slowing in the latter two Districts. Loan demand was described as weak and many Districts reported that credit standards remained tight. Most Districts reported improvements in manufacturing production. For instance, Philadelphia, Richmond, Atlanta, Cleveland, and Chicago reported moderate increases in new orders. Labor market conditions remained weak across all Districts....

...Consumer spending remained soft in most Districts. The majority of Districts reported that retail activity was flat...Kansas City and San Francisco noted weak restaurant sales...

...Most Districts reported that sales remained below the levels of a year earlier. However, Atlanta, New York, Cleveland, and Minneapolis documented some year-over-year gains in select markets... Construction remained at low levels overall, although Chicago and Dallas reported a small increase in activity...

...Reports on commercial real estate markets indicated that demand for space remained weak and that construction continued to decline in all Districts. Commercial rents declined according to Boston, Chicago, New York, Philadelphia, and Richmond. Rent concessions were reported in the Richmond and San Francisco markets, and Richmond noted that some landlords had postponed property improvements in an effort to conserve cash...

...Demand for transportation services were mixed, with some Districts noting stabilization at weak levels. Reports indicated that freight volume declines were moderating in Cleveland, while Dallas and Atlanta reported a modest pickup in rail shipments...

...Most Districts reported modest improvements in the manufacturing sector... The near-term outlook among manufacturers varied, but the majority of reports indicated that manufacturers were cautiously optimistic...

...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...

...Wage pressures remained low across all Districts. Several Districts noted businesses and local governments imposing wage freezes or even reducing employee compensation in some instances... Kansas City, Philadelphia, Chicago, Minneapolis, San Francisco, Dallas, and Richmond noted an increase in the cost of some raw materials, including fuel, metals, and steel... Retail prices were described as generally steady in most Districts...

...Reports on agricultural activity were mixed... Dallas reported that some ranchers had liquidated portions of their cattle herds, while hog producers in the Kansas City District were said to be struggling as a result of lower pork prices...

...Contacts in the natural gas industry noted that subdued demand continued to suppress prices and has lead to cutbacks in extraction activity. Cleveland indicated that weak demand for electricity prompted coal producers to scale back production and capital investment. Kansas City noted that although coal production in Wyoming had risen, it remained below year-ago levels. Dallas and Atlanta remarked that oil and gas drilling activity continued to decline in the Gulf of Mexico, whereas Kansas City and Dallas reported that the number of rigs operating on land had increased..."

Beige Book...