Fed Beige Book: “Widespread Signs of Deceleration”
September 9, 2010 11:40 am
The Fed Beige Book was released and the opening paragraph stated that there was widespread signs of a deceleration compared with preceding periods. If that isn’t a concern, what is?
The obvious slowdown that the U.S. economy has been experiencing is starting to display velocity. This is problematic as most believe that the government is going to be there to bail us out once again. But, the Fed is almost out of conventional ammunition and even the White House is terrified of using the word stimulus. So, here we are.
First paragraph summary (Full Report HERE) :
Reports from the twelve Federal Reserve Districts suggested continued growth in national economic activity during the reporting period of mid-July through the end of August, but with widespread signs of a deceleration compared with preceding periods. Economic growth at a modest pace was the most common characterization of overall conditions, as provided by the five western Districts of St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco. The reports from Boston and Cleveland also pointed to positive developments or net improvements compared with the previous reporting period. However, the remaining Districts of New York, Philadelphia, Richmond, Atlanta, and Chicago all highlighted mixed conditions or deceleration in overall economic activity.
Highlights of the release – Color Coded:
- Fed Banks Said Manufacturing Pointed To Further Expansion
- Lending Standards Were Largely Unchanged, Beige Book Says
- Consumer Lending Remains `Sluggish In General,’ Fed Report Says
- Lending Stable Or Down Slightly, Fed’s Beige Book Says
- Home Sales `Very Low’ Or `Declining’ In Most Fed Districts
- Fed Banks Saw Little Change In Capital Spending Plans
- Fed Banks Said Upward Pressure On Prices Was `Quite Limited’
- Manufacturing Pace Of Growth Eased In Several Fed Districts
- Some Fed Banks Saw Signs Of Commercial Property Stabilization
- Fed: Demand For Commercial Space Still `Very Depressed’
- Fed Banks Saw Further Slowing Of Home Sales, Beige Book Says
- Fed Banks: Consumer `Caution’ Limited Nonessential Purchases
- Fed Banks: Consumer Spending `Appeared To Increase On Balance’
- Fed’s Beige Book Shows `Widespread Signs Of A Deceleration’
- Regional Banks Reported `Continued Growth’ In Economy