The Federal Summary of Commentary on Current Economic Conditions by Federal Reserve District has released their report for October 21, 2009. Click on the link provide to review the full report, The Federal Beige Book
FOURTH DISTRICT – CLEVELAND
The economy in the Fourth District has shown a few signs of improvement since our last report, though overall activity is sluggish and the recovery remains fragile. Reports from factories indicated that production was steady to up slightly, with increases being attributed to new orders and seasonal adjustments. New home sales showed a modest improvement, while commercial and industrial construction continued at a slow pace. Credit availability remains a major issue for residential and commercial contractors. Sales by District retailers were flat to up slightly. New motor vehicle sales fell since the ―cash-for-clunkers‖ program ended, whereas purchases of used vehicles improved. Coal production declined, with little change noted in oil and gas output. Reports indicated an uptick in freight transport volume. Demand for new commercial and industrial loans was soft, while consumer lending was flat to down. Core deposits continued to grow substantially at most banks.
The only industries reporting notable employment reductions were commercial construction and coal mining. Staffing firm representatives had mixed responses when asked about the number of new job openings. However, a majority said that they received more requests for temps rather than permanent employees. Given the weak labor market, wage pressures are contained. We heard several reports of an uptick in steel prices. Otherwise, raw materials and product pricing were relatively stable. Business fixed investment remains at reduced levels, with little change expected in the upcoming months.
