weoden
11-30-2005, 05:32 PM
The FOMC issued the beige book and GDP growth is at 4.3%. Here are some snippets from the summary.
http://www.federalreserve.gov/FOMC/BeigeBook/2005/20051130/default.htm
Consumer Spending
Many Districts reported declines in auto sales. Atlanta and St. Louis both reported year-over-year decreases. Cleveland noted that auto sales declined further in October after a sharp decline in September; Richmond reported recent auto sales that were substantially weaker than in their previous report, and Kansas City reported declines in late October and early November. Chicago, Minneapolis, and San Francisco noted that recent sales were slow, while Philadelphia reported increased sales in November after a decline in October. Some Districts cited a lack of new incentive programs or the ending of pricing discounts as one reason for the declines. Several Districts noted that the shift from larger autos and sport utility vehicles toward more fuel-efficient vehicles continued. Additionally, Dallas and San Francisco noted a strong demand for foreign vehicles and soft or lower sales of domestic brands.
Manufacturing and Other Business Activity
Several Districts with largely positive reports nonetheless expressed concern over rising material and energy costs.
Many Districts also noted solid growth in the financial, health care, software, and information technology sectors.
Real Estate and Construction
Residential real estate activity was reported to have moderated in many Districts.
Banking and Finance
Overall lending activity varied throughout the Federal Reserve Districts.
Natural Resource Industries
Districts reporting on the energy sector generally saw growth since their previous report.
although most contacts reported that drilling was being constrained by shortages in rigs, equipment, and workers.
except for a mine in western Montana, most mines were operating near to their full capacity.
Labor Markets
Several Districts noted increased hiring in a variety of industries. Dallas and New York reported increased hiring for professional and some types of skilled workers. Chicago, Boston, and New York reported increased demand for office workers. Dallas reported new hiring and concerns about shortages of skilled workers in the energy industry. St. Louis reported plans of increased hiring in the freight transportation industry. New York and Kansas City reported increased hiring in the manufacturing sector, whereas Cleveland and Boston reported manufacturing hiring as modest or unchanged. Cleveland reported modest hiring in the retail sector, and Richmond indicated that retail hiring continued to contract. Chicago reported employment increases in a wide range of sectors, with the exception of the auto industry, where several small suppliers reported reduced employment and two automakers announced plans for plant shutdowns and job cuts. Several Districts reported signs of tightening in labor markets and some difficulty in finding workers for certain occupations. Dallas and Cleveland reported that trucking firms were having difficulty attracting and retaining drivers. San Francisco reported tight labor market conditions for workers with specialized skills in the financial, construction, and health-care services sectors. Atlanta reported labor shortages in storm-damaged areas, especially in the construction industry.
Wages
District reports indicated modest overall upward pressures on wages.
Prices
Consumer prices remained stable or experienced generally modest increases, but most Districts reported increasing input prices, particularly of energy-related products, construction and raw materials, and transportation.
http://www.federalreserve.gov/FOMC/BeigeBook/2005/20051130/default.htm
Consumer Spending
Many Districts reported declines in auto sales. Atlanta and St. Louis both reported year-over-year decreases. Cleveland noted that auto sales declined further in October after a sharp decline in September; Richmond reported recent auto sales that were substantially weaker than in their previous report, and Kansas City reported declines in late October and early November. Chicago, Minneapolis, and San Francisco noted that recent sales were slow, while Philadelphia reported increased sales in November after a decline in October. Some Districts cited a lack of new incentive programs or the ending of pricing discounts as one reason for the declines. Several Districts noted that the shift from larger autos and sport utility vehicles toward more fuel-efficient vehicles continued. Additionally, Dallas and San Francisco noted a strong demand for foreign vehicles and soft or lower sales of domestic brands.
Manufacturing and Other Business Activity
Several Districts with largely positive reports nonetheless expressed concern over rising material and energy costs.
Many Districts also noted solid growth in the financial, health care, software, and information technology sectors.
Real Estate and Construction
Residential real estate activity was reported to have moderated in many Districts.
Banking and Finance
Overall lending activity varied throughout the Federal Reserve Districts.
Natural Resource Industries
Districts reporting on the energy sector generally saw growth since their previous report.
although most contacts reported that drilling was being constrained by shortages in rigs, equipment, and workers.
except for a mine in western Montana, most mines were operating near to their full capacity.
Labor Markets
Several Districts noted increased hiring in a variety of industries. Dallas and New York reported increased hiring for professional and some types of skilled workers. Chicago, Boston, and New York reported increased demand for office workers. Dallas reported new hiring and concerns about shortages of skilled workers in the energy industry. St. Louis reported plans of increased hiring in the freight transportation industry. New York and Kansas City reported increased hiring in the manufacturing sector, whereas Cleveland and Boston reported manufacturing hiring as modest or unchanged. Cleveland reported modest hiring in the retail sector, and Richmond indicated that retail hiring continued to contract. Chicago reported employment increases in a wide range of sectors, with the exception of the auto industry, where several small suppliers reported reduced employment and two automakers announced plans for plant shutdowns and job cuts. Several Districts reported signs of tightening in labor markets and some difficulty in finding workers for certain occupations. Dallas and Cleveland reported that trucking firms were having difficulty attracting and retaining drivers. San Francisco reported tight labor market conditions for workers with specialized skills in the financial, construction, and health-care services sectors. Atlanta reported labor shortages in storm-damaged areas, especially in the construction industry.
Wages
District reports indicated modest overall upward pressures on wages.
Prices
Consumer prices remained stable or experienced generally modest increases, but most Districts reported increasing input prices, particularly of energy-related products, construction and raw materials, and transportation.