Beige Book: Most Districts indicated economic growth was modest

  • Most Districts indicated economic growth was modest during July and August
  • Consumer spending on tourism was stronger than expected but other retail spending continued to slow, especially non-essential
  • Some Districts highlighted reports suggesting consumers may have exhausted their savings and are relying more on borrowing to support spending
  • New auto sales did expand in many Districts, but contacts noted this had more to do with better availability of inventory rather than increased consumer demand.
  • Manufacturing contacts in several Districts also noted that supply chain delays improved
  • New orders were stable or declined in most Districts, and backlogs shortened
  • Nearly all Districts reported the inventory of homes for sale remained constrained
  • Some Districts reported higher delinquencies on consumer credit lines
  • Job growth was subdued across the nation
  • Nearly all Districts indicated businesses renewed their previously unfulfilled expectations that wage growth will slow broadly in the near term.
  • Most Districts reported price growth slowed overall, decelerating faster in manufacturing and consumer-goods sectors.
  • Full report

This is about what you would expect from this report, though I found the jobs commentary and wage commentary to be more dour than I expected. It sums up what we already know: the jobs market is softening, retail is soft, manufacturing is slow but steady and there is still some pent up savings.

This article was written by Adam Button at Source