Fed's Beige Book Suggests Ongoing Improvement In Economic Conditions
2012-01-12 11:23:10
U.S. economic activity expanded at a modest to moderate pace in the latter part of last year, according to the Federal Reserve's Beige Book, with reports generally suggesting ongoing improvement in economic conditions in recent months.
The Beige Book, a compilation of anecdotal evidence on economic conditions from each of the twelve Fed districts, was released Wednesday afternoon.
The report is typically released about two weeks before the Fed's monetary policy meeting is held, although the data contained in the report is largely viewed as old news.
The Fed said seven of the twelve Fed districts characterized growth as modest, while New York and Chicago noted a pickup in the pace of growth, Dallas and San Francisco reported moderate growth, and Richmond indicated that activity flattened or improved slightly.
The central bank noted that most districts have been highlighting more favorable conditions than identified in reports from the late spring through early fall.
Most districts saw an increase in consumer spending, according to the reports, with the increase reflecting holiday retail sales that were noticeably higher than last year.
Consumer electronics and jewelry were identified as the strongest holiday sellers by various districts, while many districts reported weak sales of warm clothing due to unusually mild weather.
The Fed noted that most districts also reported solid gains or high levels of travel and tourist activity, with growth visible in both the business and leisure segments.
The report also showed a continued increase in demand for non-financial services, including professional and transportation services.
While manufacturing activity also continued to show an overall expansion, the Fed said the pace of growth has slowed for selected subsectors such as technology products
Meanwhile, activity in the residential real estate markets largely remained sluggish, although the reports indicated further increases in the construction of multi-family residences.
With regard to inflation, the Fed said that upward price pressures and price increases were very limited during the reporting period.
Wage pressures also remained modest, as the combination of limited permanent hiring and numerous active job seekers helped to keep a lid on wage increases.