Beige Book: Several industries improve in Eighth District

The Federal Reserve's Beige Book for the Eighth District found several industries improved during the latest reporting period.

Retailers, auto dealers, banks and real estate agents realized improvements in the district that includes Springfield. Manufacturers were mixed, and agricultural and natural resources conditions remained weak.

The Beige Book, published eight times a year and released last week, summarizes anecdotal information on current economic conditions in 12 districts across the U.S.

Consumer spending
While retailers largely reported sales at or above 2014 levels in the most recent quarter, many contacts indicated sales were short of their expectations, according to the report.

The majority continued to have a positive outlook.

Auto dealers realized gains from the beginning of July, with several pointing to a shift toward high-end and new cars.

Noting low gas prices continue to have a positive impact on their industry, several contacts predicted sales increases through the fourth quarter.

Banking and finance
Eighth District banks reported an overall improved lending environment during the past three months.

According to the report, loan demand grew, especially for residential mortgages and commercial and industrial loans.

Loan delinquencies decreased across the board, and several contacts noted job market improvements were a factor in loan performance.

Real estate and construction
The residential, commercial and industrial real estate markets all were up during the latest reporting period.

For example, June home sales in St. Louis were up 16 percent, according to the report.

Most contacts reported higher demand for office and industrial properties.

Manufacturing
Increases in new orders were offset by an equal number of reports of decreased orders.

Many contacts also indicated orders were short of expectations for the third quarter.

In the fourth quarter, expectations are similarly mixed.

Agricultural and natural resources
While conditions improved for cotton and rice, corn and soybean crops deteriorated, according to the report.

Nearly 20 percent of both corn and soybean crops in Missouri were rated in very poor or poor condition, largely due to damages from record rainfall.

Coal production in the district fell short in July, with 8.7 percent fewer tons produced than the same month last year. Year-to-date coal production also decreased by 5.2 percent compared to the prior year.