Beige Book: Economic Growth ‘Modest to Moderate’
According to the Federal Reserve’s Beige Book, reports from the twelve Fed districts indicated that the economy continued to expand at a modest to moderate pace from early October through mid-November.
Manufacturing activity expanded at a modest to moderate pace in most Districts during the reporting period. Firms in Philadelphia and Cleveland are beginning to take a more conservative stance toward capital spending, while capital outlays remain solid in Boston and Kansas City. Companies across a number of sectors in Philadelphia noted a reduction in activity due to the federal government shutdown, while defense contractors in Boston reported that sequestration has not yet affected them significantly.
Banking & Financial Services
On balance, banking conditions remained stable in a majority of reporting districts. Loan volume showed a modest increase in Philadelphia, Chicago, and San Francisco, while Boston and Atlanta reported a moderate rise. Dallas noted that loan demand softened across most lines of business during the reporting period. An increase in business-credit activity was seen in a number of districts. Commercial real estate lending increased in New York, Cleveland, Atlanta, Chicago, Kansas City and San Francisco. Demand for commercial and industrial (C&I) loans rose in the New York, Atlanta and Kansas City Districts, but weakened in St. Louis. C&I lending was unchanged in Chicago. In the Philadelphia, Richmond, Atlanta, Chicago and San Francisco districts, some bankers eased lending standards in response to aggressive competition for quality loans. Lending standards remained unchanged across loan categories in New York, Cleveland, St. Louis and Kansas City.
To read the full Beige Book report click here.