The Federal Bank of Philadelphia prepared the latest Beige Book in preparation for the next meeting of the Federal Open Market Committee. The book details the most recent economic activities in 12 Federal districts.
Reports Shows Modest Increase on Economic Activity
Boston: There is a steady economic growth in First District. Retailer, tourism, advertising and consulting industry shows a positive response. The commercial real estate industry remains stagnant though, while pipelines, office leasing, and the demand of real estate loans are still low. Nonetheless, the district is expecting a modest economic growth for 2013.
New York: There is a positive result from 2nd District considering the aftermath of Super Storm Sandy. There is pick-up on commercial mortgage, steady growth on other types of loans and low delinquency rate. Auto sales are strong for the month of November and December, while tourism Industry is low on November due to the storm but was good on December in New York City.
Philadelphia: The district has positive economic result compared to the previous report. Experts confirm that there will be an increase demand on headcounts. The only concern among contacts is the recent payroll tax increase which will greatly affect their demand due to potential budget cuts.
Cleveland: There was a modest pace on business activity for the past six weeks. Many contacts are uncertain for the future due to unresolved fiscal policy matters. Retailers show a solid output from holiday season but manufacturing sectors are flat to none. Residential and commercial construction is increasing especially on multi-family segment.
Richmond: The economic growth of the district shows an increase at a modest pace for the past six weeks. Increase in manufacturing, retail, non-retail and residential real estate. The commercial real estate is mixed. On the other hand, there is a low improvement to none on labor on coal production.
Atlanta: There is positive economic report from the 6th District with a continuous increase demand for the year 2013. There was a good result on tourism, retail, residential and commercial estate. Manufacturing industry shows a slow order. Bank loans were strengthen indicating a slow demand on bad credit loans.
Chicago: Business activity on 7th District continued to increase in November and December. Contacts believed that the economic condition of this year will be at par with or will outperform 2012. Some contacts though are uncertain due to unresolved fiscal policy. Credit conditions improved gradually showing a decreasing demand on bad credit loans.
St. Louis: 8th District shows a modest pace on their economic activity. Manufacturers showed a negative net. There was continuing demand on residential real estate, and commercial real estate in some areas.
Minneapolis: The district shows a moderate increase on their business activity, as compared to the last report. There was a positive increase on consumer spending, tourism, energy, manufacturing and professional service.
Kansas City: There is an economic expansion in November and December from the 10th District. There is an increase in real estate activities, retails and car sales, demand on real estate loans; but both oil and natural gas rig count dropped.
Dallas: Economic activity of the district continues to expand at a modest pace for the past six weeks. There is an improvement in construction and in real estate industry. The report shows an increase in retail and car sales.
San Francisco: The report of the 12th District shows a modest pace during the reporting period. There is a good response from retail due to holiday season. The real estate industry is picking up while the manufacturing industry has a mixed result across the district but seemed to go up.