Beige Book shows strengthened economy

Overall, the economy in the district, which comprises western Missouri, Nebraska, Oklahoma, Colorado, Wyoming, Kansas and northern New Mexico, expanded in late July and August, though at a slightly slower pace than in the previous survey.

Consumer spending was up, as most retailers reported solid year-over-year sales increases. Those interviewed were especially pleased with sales of back-to-school items and appliances. Growth also was strong in auto sales, though most dealers expect numbers to drop off due to current discount programs.

Factory activity remained stronger than a year ago, but fewer plant managers reported increases in production, shipments and orders than in the previous survey. Some producers are also worries about the impact of high oil and gasoline prices on future sales.

In real estate, housing activity began to ease from previous surveys, while commercial real estate continued to improve. Inventories of unsold homes were up considerably from a year ago in some markets, while home price growth remained moderate in most cities.

Agricultural conditions have improved, as recent cooler weather and rains improved soybean crops, though little help is expected for corn yields.

The labor market strengthened slightly, as hiring announcements outpaced layoff announcements by a small margin.

Prices rose significantly, both on the retail and wholesale levels. Wholesale prices rose primarily due to increased costs of petroleum-based products.

The Beige Book is a collection of anecdotal information, published eight times a year, which is used as a general snapshot of the economy.

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