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 January 7th):
   
1. Economic activity increased modestly since the last report, but at a slower pace.  Expansion was characterized as moderate, modest and mixed. The economy grew at a slight increase in seven Districts, two reported mixed conditions and three reported slowing.

2. Consumer spending during the holidays was reported as subdued with continued weakness in auto sales.  Overall outlook among retail merchants for 2008 is cautious.   
 
3. Tourism activity was generally positive.
 
4. Most reports cited robust demand in several nonfinancial service industries including health care, hospitality, legal, insurance, and in some areas petrochemicals. Demand for transportation services was generally weak, led by lower demand from the housing sector. Temporary staffing firms reported mixed demands.

5. Manufacturing was varied, with significant weakness in housing and automotive related industries. Global demand was stronger, especially in industries that compete against imports.  
 
6. Commercial market reports were varied in the the amount of growth reported, from easing to little change. Most Districts reported stable to increased absorption of commercial space. Rental rates were mixed across Districts. Construction activity continued with mixed reporting from declining to rising. Reports on commercial real estate loan demand were also mixed, although Dallas and Cleveland noted relatively healthy demand.  Most contacts anticipate a slower pace of commercial development during 2008.

7. Residential real estate markets continued to weaken, and most Districts reported continued declines in home sales and construction, with varied reports on pricing.  Outlook is for continued weakness in the market for the first half of 2008.
    
8. Both business and consumer lending activity slowed since the last Beige Book.  
 
9. Favorable agricultural performance in much of the country generally due to higher crop prices and favorable weather. However, despite recent rains, conditions for drought-stricken areas in the Atlanta and Richmond Districts remained generally poor.

10. Energy activity increased.  New offshore oil drilling platforms should boost oil production in 2008. 
 
11. Reports suggest that labor markets remained relatively tight overall, and especially for skilled workers, whereas housing-related industries continued to trim payrolls. Increases in employment costs were generally described as moderate. Wage pressures were varied among the districts.

12. According to most reports, businesses continued to face rising costs for food, petrochemicals, metals, and energy-related inputs. Transportation costs for most products increased.
 
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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