Optimistic Beige Book

The Fed’s “Beige Book” report is one of those wonky things put out by the Fed that’s actually fairly interesting. The one that came out today had mostly good things to say about the economy.

The informal survey of anecdotal business contacts’ views is conducted by each of the central bank’s 12 regional districts, and paints a fairly rosy picture of the outlook. The latest beige book report finds “overall economic activity expanded during the reporting period from early April to late May.”

Growth was characterized as “moderate” in the Chicago, Richmond, Minneapolis and San Francisco districts; “modest” in New York, Philadelphia and St. Louis regions; mixed in the Boston district; “slight” in Cleveland and Kansas City; holding steady in Atlanta; and slowing “slightly” in Dallas. The latter could be associated with falling business spending in the energy sector.

In a hopeful sign for the housing market, the Fed reported “residential and commercial real estate activity and construction improved since the last report.”

Overall loan demand increased, the report said, particularly in the New York district.

Posted by on June 3rd, 2015 at 2:20 pm


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