Southern New Jersey Overlook

The Federal Reserve recently published their latest issue of the Beige Book.  It is available online.

The following is a brief list of it's overall (national) summary findings (using data as of October 5th):
   
1. Economic activity continued to expand since the last report, but the pace of growth had decelerated since August.  Expansion was characterized as moderate, modest and mixed.
The economy grew at a slower rate in five Districts: Cleveland, Dallas, Kansas City, Richmond and San Francisco; with the rest of the districts observing similar growth to that observed in the last Beige Book.

2. Consumer spending expanded, but unevenly and slower than in August.  The same with manufacturing and service sectors.  Some reported that weaker domestic demand was offset by stronger global demand.

3. Tourism activity was generally solid.
 
4. Districts reporting on business services indicated the sector is in expansion but the strength varied. Temporary staffing firms reported increased hiring, with the exception of activity to support financial services and real estate. 

5. Factory activity continued to expand, but reports suggested that growth has been dampened by declining output of products used in home construction.  The outlook for factory activity is uneven.
 
6. Commercial market fundamentals remained solid. Most Districts reported steady absorption of commercial space. Rental rates were firm to rising across Districts, with sizable increases for Manhattan office space. Construction activity continued at a steady pace overall. Some softness in commercial investment activity was noted, however, and several Districts reported a move to more conservative financing. Reports suggested developers are becoming more cautious--in some cases shelving or canceling projects.

7. Residential real estate markets continued to weaken, and most Districts reported additional declines in home sales, prices and construction. 
    
8. Financial institutions reported an increase in delinquencies and slight deterioration in credit quality. Lenders in many Districts tightened credit standards, particularly for real estate.  The majority of reports indicated an increase in business lending but a decline or slower growth in consumer lending. 
 
9. Favorable agricultural conditions in much of the country have allowed harvests to run ahead of normal schedules and contributed to above-average crop yields throughout much of the country. A near-record corn crop and above-average soybean yields are expected. Livestock producers reported strong demand and high prices. Bumper crops have strained storage capacity and caused transportation problems. Drought continues to hamper production in the southeast.

10. Energy activity held at robust levels but growth as slowed.  Oil production was up slightly. 
 
11. Job growth eased in some regions, but labor shortages were reported for many occupations in most Districts and are said to be restraining economic activity in some instances. Wages rose moderately except for workers in short supply, where sharp increases were reported for some positions. 
 
12. Upward pressure on input costs are reported in most Districts, but competitive pressures are restraining the ability to pass higher input costs to selling prices in many instances.
 
Note: This represents the national summary for ALL districts combined.  The report also provides more detail on each item summarized nationally, as well as reporting by each district on all items.
 
 
 
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