Reports from the 12 Federal Reserve Districts suggest that economic activity continued to be weak going into the summer, but most Districts indicated that the pace of decline has moderated since the last report or that activity has begun to stabilize, albeit at a low level. Five Districts used the words "slow", "subdued", or "weak" to describe activity levels; Chicago and St. Louis reported that the pace of decline appeared to be moderating; and New York, Cleveland, Kansas City, and San Francisco pointed to signs of stabilization. Minneapolis said the District economy had contracted since the last report.
Overall, several themes were set forth in the report’s findings. Those themes included:
• Signs of macroeconomic stabilization are present.
• Economic activity and changes in that activity are uneven across Federal Reserve districts and by economic sector.
• No significant rebound in consumer spending is evident.
• The manufacturing sector is still sputtering.
• The residential real estate market shows signs of stabilizing in numerous districts.
• The commercial real estate sector continues to weaken.
The following table provides a brief summary of developments in the various Federal Reserve districts.
Upcoming releases of the Beige Book on September 9 and October 21 will provide evidence as to whether the current indications of stabilization led to a near-term turnaround in the economy. The latter data will also furnish additional evidence as to the strength of any near-term recovery. For now, weak consumer spending, the possible adverse impact of deteriorating commercial real estate market conditions, and historic experience following the collapse of major real estate asset bubbles hint at a rather sluggish recovery.
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