Highlights
The economy continued to improve according to the latest Beige Book, although the growth rate slowed in some Districts. Instead of all Districts simply reporting improvement as in the previous release, two Districts said conditions were "steady" and two Districts said "the pace of economic activity had slowed recently." Importantly, the report noted that labor markets "improved modestly."

While the overall tenor of the Beige Book is less positive, there are some pluses. Manufacturing mostly continues to expand and retail sales are up. Several Districts cited apparel, food, and other necessities as recent strong sellers, while big-ticket items were weak sellers. However, auto sales have slipped in recent weeks.

On the downside, residential real estate is called "sluggish" after the expiration of special tax credits on April 30 but that characterization is less negative than many expected. Commercial real estate is still weak.

Wage pressures are seen as "contained" across most Districts and consumer prices are reported as "relatively stable."

Lending standards remain "restrictive." Banking conditions are mixed in many Districts but a few reported a decline in delinquency rates.

Overall, the Beige Book fits the picture of a moderating recovery that most analysts had already concluded as taking place. In fact, the Beige Book's characterizing appears to be less negative than many had perceived. Equities initially dipped on the release but rebounded after reviewing details.

2010 Release Schedule

Released On: 1/13 3/3 4/14 6/9 7/28 9/8 10/20 12/1 Released For: