Financial Controls: Fed Beige Book:"USA Economy Continued to Improve" (Review) "Hiring activity showed some improvement"

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Marriner S. Eccles Federal Reserve Board Building in Washington

Fed Beige Book: USA Economic Activity Continued to Rise at Modest Pace

Summary

The Federal Reserve Board issued the much scrutinized Beige Book on December 1, 2010. Overall, "Reports from the twelve Federal Reserve Districts indicate that the economy continued to improve, on balance, during the reporting period from early/mid-October to mid-November." The Federal Reserve wording and theme is more positive regarding economic activity, recovery, and growth than in previous reports. No districts reported overall negative, slow, or held steady economic activity: 10 districts reported expansion and growth of economic activity and conditions and 2 districts reported varied or mixed activity. As always, the Fed Beige Book, officially titled the Summary of Commentary on Current Economic Conditions by Federal Reserve District, is carefully worded.

Regarding the USA Financial System

"Lending activity remained stable across most Districts. Credit quality has been steady to improving for most of the Districts that commented on it."

Regarding Jobs Nationwide

"Hiring activity showed some improvement across most Districts."

Economic Conditions Nationwide by Category Since the Prior September 8, 2010 Report:

Consumer Spending: reports on consumer spending tended to be positive.

Travel and Tourism: tourism improved in all reporting Districts

Business Spending (no mention)

Professional and Nonfinancial Services steady to increasing activity

Manufacturing activity continued to expand in almost all Districts

Transportation activity (no mention)

Residential Real Estate: housing markets remain depressed

Commercial Real Estate: conditions mixed, and activity stayed at low levels

Real Estate Construction activity remained at a low level in all Districts

Banking and Finance: lending activity remained stable

Agriculture conditions were generally favorable

Natural Resources: overall activity in the energy sector continued to expand

Employment: hiring activity showed some improvement across most Districts
Wages: wage pressures were contained
Prices: prices for final goods and services were fairly stable

Economic Activity and Conditions By Federal Reserve District

(Prior report was October 20, 2010, from information collected on or before November 19, 2010)

Boston: business activity continues to expand gradually

New York: economy has continued to expand

Philadelphia: business activity has been varied across sectors

Cleveland: economic activity grew at a modest pace

Richmond: economic activity increased at least moderately in most sectors

Atlanta: economic activity rose modestly

Chicago: Economic activity increased at a slightly faster pace

St. Louis: reports have been mixed

Minneapolis: economy grew at a firm pace

Kansas City: economy strengthened

Dallas: economy expanded at a modest pace

San Francisco: economic activity continued to edge up

Conclusion

This December 1 Beige Book, by district economic activity, is more positive than the September 8 and October 20 reports. No districts reported negative, slow or held steady economic activity, compared to 2 and 5 in the previous reports, respectively. 2 districts reported varied or mixed activity (Philadelphia and St. Louis), compared to 3 in the prior report. The other 10 districts reported expansion and growth of economic activity and conditions. The wording is more optimistic than previous reports.

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