According to the Federal Reserve’s recently released Beige Book, reports from the twelve districts indicated that overall economic activity increased at a modest to moderate pace since the previous report across all Federal Reserve districts except the Dallas district, which reported strong economic growth.

Highlights include:


The manufacturing sector expanded in most districts since the previous Beige Book. Activity increased in the Boston, Cleveland, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco Districts. Continuing a theme from the previous report, strength in residential construction was a boon to manufacturers that supplied that industry.

Banking & Financial Services

Overall bank lending increased modestly since the previous report. The Chicago district indicated modest growth in business loan demand. The New York District saw an increase in demand for all types of loans except commercial and industrial loans, where demand was unchanged. San Francisco district banking contacts reported ample liquidity and competition among lenders for well-qualified business borrowers but limited credit availability for small businesses. The Philadelphia district noted slow loan growth, and the Atlanta district reported weak loan activity.

Credit quality improved, on balance. The New York and Cleveland districts reported widespread decreases in delinquency rates for business and consumer loans. Several districts reported that credit standards have not changed much since the previous report.

To read the full report click here.