The Fed’s Beige Book is a summation of useless anecdotal information compiled by Fed governors from each of the Fed’s 12 regions, eight times a year.
The report is 36 pages long so inquiring minds may be seeking a short version.
Rates of Expansion
- Moderate Expansion: San Francisco, Cleveland, New York
- Moderately Expanding: Dallas
- Modest Expansion: Philadelphia, Chicago, St. Louis
- Modestly Expanding: Richmond, Kansas City, Minneapolis, Atlanta
- Modestly to Moderate Expansion: Boston
Those keeping closer score will note that Chicago “growth slowed to a modest pace”. Emphasis mine.
St. Louis “economic activity improved at a modest pace”.
In Kansas City, “manufacturing and other business services expanded at a moderate pace, and energy activity continued to increase modestly”.
Boston business reports indicate that “revenues at most manufacturing and retail firms continued to expand modestly to moderately”.
I will spare you the drivel about other regions.
- Overall: “Auto sales declined modestly…. Reports from most retailers indicated that sales increased slightly while auto dealers noted soft sales activity.”
- Philadelphia: Auto dealers throughout the region reported that the slight year-over-year sales declines of the prior period had deepened to a modest rate during the current period, although the level of sales remains high. Prices are very competitive and manufacturers are providing significant dealer incentives to move inventory. Dealers expect manufacturers to back off production next year.
- Cleveland: Auto dealers are concerned about above-normal inventories. Customers are reportedly waiting for higher OEM incentives. Year-to-date production through July at District auto assembly plants declined more than 16 percent when compared to that of the same period a year earlier. Much of the decline can be attributed to retooling for three next-generation vehicles.
- Richmond: An auto dealer in coastal South Carolina reported that sales had leveled off and that inventories continued to build, so he expects manufacturers to offer even more incentives in coming months.
There are pages of similarly useless drivel on retail spending, housing, wages, commercial real estate, etc., telling everybody what they already know.
There was not a single thing in the report that was not already widely known, in greater detail. How much money is wasted compiling this drivel?
Mike “Mish” Shedlock
If the Fed says it’s “modest”, I say it must be nonexistent….
Nikolai A Leeds said:
Certainly isn’t ‘Non existent” in the NYC metropolitan area or in Eastern Massachusetts.
Boom regions are seeing booming economic activity where the last 5-6 years have been the strongest in history.
The DETAILS of the report are much different than the summary of the report. If you look at the DETAILS of the report (from each federal reserve region) employment is ‘tight’ with wages rising significantly in most regions and other than a “dip” in auto sales, the trend is still higher especially for SUV’s & Crossover vehicles and don’t forget the white hot real estate markets talked about in each region
Nikolai A Leeds said:
Correction – “I meant Both regions are seeing booming economic activity where the last 5-6 years have been the strongest in history.”
Tony Bennett said:
Going forward Harvey & Irma will be blamed for any and all weakness, if the rebuild (with lotsa lotsa new debt) does not provide enough boost.
“How much money is wasted compiling this drivel?”
I would rather the Fed governors waste their time on this rather than get into other mischief.
Kind like being grateful I don’t get all the government I pay for…
Not to worry, we are getting all the government we’re paying for. Any day now our elected twits will succeed in convincing us that the Russians are the root of all evil.
The Federal Reserve mission is to debase our currency in order to transfer wealth from workers and producers to government leaches.
O/T Cataluña passed law allowing referendum and is signing a decree that the referendum take place, this very moment.
They brushed aside opposition tabled statutory delays on the grounds that ultimately they are not binding on parliamentary procedure.
Modest is best translated as “not dead yet”, in the sense that Monty Python uses the phrase.
Just another word added to the Bullshit Bingo cards that the Fed uses to curtail the bordom created by meetings.
Mish said ” How much money is wasted compiling this drivel?”
A “modest” amount, of course!