Beige Book: Depression, Recession

All districts showed weakness… weakening labor, weak exports, weak housing, commercial real estate declines, lower housing prices, weak retail, mining and energy down, wage pressure subdued, lower manufacturing…. You already know most of this.  This was prepared at the Federal Reserve Bank of Minneapolis and based on information collected before November 24.

We have attached a excerpt below.

Overall economic activity weakened across all Federal Reserve Districtssince the last report. Districts generally reported decreases in retailsales, and vehicle sales were down significantly in most Districts.Tourism spending was subdued in a number of Districts. Reports on theservice sector were generally negative. Manufacturing activity declinedin most Districts, and new orders were soft. Nearly all Districtsreported weak housing markets characterized by reduced selling pricesand low, but stable, sales activity. Commercial real estate marketsdeclined in most Districts. Lending contracted, with many Districtsreporting reductions in residential, commercial and industrial lendingand tightening lending standards. Agricultural conditions were mixedwith a relatively good harvest but concerns about profitability. Miningand energy production and exploration started to soften due to loweroutput prices.

Here is a link to the full transcript.

Jon C. Ogg
December 3, 2008