Fed Beige Book: Signs of Improvement

Reports from the 12 Federal Reserve Districts suggest that economic activity continued to be weak going into the summer, but most Districts indicated that the pace of decline has moderated since the last report or that activity has begun to stabilize, albeit at a low level.

In most reporting Districts, overall lending activity was stable or weakened further for most loan categories.

All Districts indicated that labor markets remain slack, with most sectors either reducing jobs or holding them steady and aggregate employment continuing to decline, on net.

Contacted retailers in the First District report mixed sales results for the early summer months, although the majority of respondents report less negative or more positive year-over-year sales changes than in recent reports. Family restaurants are said to be an exception, with some deterioration in sales.

Commercial real estate leasing markets were described as either “weak” or “slow” in all 12 Districts, although the severity of the downturn varied somewhat across Districts.