Things have certainly been worse: consumer spending is slightly up, unemployment is down, and prices are continuing to increase, but at a modest pace.
So says the newest edition of the Beige Book, officially called the Summary of Commentary on Current Economic Conditions, reporting on general economic trends across the country.
Released eight times a year, the Beige Book, published by the Federal Reserve Board, documents economic trends in the various Federal Reserve Bank districts nationally based upon interviews with bankers, businesspeople, developers, economists and others, trying to get an economic overview of what’s up and what’s down.
In its just-released edition, the Beige Book notes that “consumer credit quality was generally described as stable and healthy,” tourism was up, and manufacturing activity mixed.
In the 10th District of the Federal Reserve, which includes northern New Mexico and Colorado, hiring and business conditions in the last several months were mostly unchanged, while “contacts in the energy, agriculture, and commercial real estate sectors reported moderate declines in activity.”
New office, retail, and industrial construction in this district “continued to perform above expectations, while Class B properties faced lower operating incomes and valuations.”
The labor market in the 10th District showed slight job gains over the last month, which perhaps was indicative of filling long-vacant positions rather than actual workforce growth.
In the 11th District, which is based in Dallas, and takes in Texas and southern New Mexico, “growth moderated in the service sector, but rebounded in manufacturing and energy.”
Housing demand in this district “generally held up during the reporting period, despite higher mortgage rates, although contacts noted some seasonal softening.” Existing home sales dipped, while new home sales were mostly solid. Meanwhile, apartment leasing was solid, even as “rents and occupancy were largely flat as supply continued to outpace demand.”
Employment growth in the service sector appeared moderate, but “rebounded in manufacturing and energy.”
Economic activity in the 12th District, which includes all of Arizona, was stable with robust retail sales, and prices and wages both increasing. Activity in residential real estate slowed just a little, while inventories of single-family homes remained tight as “owners with existing lower-rate mortgages stayed out of the market.”
Employment levels in this district, it was also noted, slightly eased as “labor supply and demand came into better balance.” The report added: “Hiring was somewhat easier with contacts reporting more job applicants, higher quality candidates, and lower employee turnover.”
By Garry Boulard
