[Marxism] Full text of the Beige Book July 23,2008

["johnaimani" <johnaimani@xxxxxxxxxxxxx>]

The following is the full text of the Beige Book released by the Federal 
Reserve on July 23, 2008 and based on information collected on or before July 
14, 2008:


Reports from the twelve Federal Reserve Districts suggest that the pace of 
economic activity slowed somewhat since the last report. Five eastern Districts 
noted a weakening or softening in their overall economies, while Chicago 
characterized its economy as sluggish and Kansas City noted a moderation in 
growth. St. Louis said activity was stable and San Francisco reported little or 
no growth. Cleveland and Minneapolis reported slight increases in economic 
activity, while Dallas described growth as steady and moderate. 

Consumer spending was reported as sluggish or slowing in nearly all Districts, 
although tax rebate checks boosted sales for some items. Tourist activity was 
mixed, with residents in several Districts choosing to vacation closer to home 
due to high gasoline prices. The demand for services was also mixed across 
Districts, with strength in the IT and health care industries offsetting some 
weakness in other service sectors. Manufacturing activity declined in many 
Districts, although demand for exports remained generally high. Residential 
real estate markets declined or were still weak across most of the country. 
Commercial real estate activity also slowed or remained sluggish in a majority 
of Districts, although a few Districts noted slight improvement. In banking, 
loan growth was generally reported to be restrained, with residential real 
estate lending and consumer lending showing more weakness than commercial 
lending. Districts reporting on agricultural activity said conditions were 
mixed, based largely on how June precipitation affected them. Districts 
reporting on the energy sector said it continued to strengthen. 

All reporting Districts characterized overall price pressures as elevated or 
increasing. Input prices continued to rise, particularly for fuel, other 
petroleum-based materials, metals, food, and chemicals. Retail price inflation 
varied across the country, with some Districts reporting increases but others 
noting some stability, at least for the present. Wage pressures were generally 
limited in most Districts, as labor market demand was soft except for highly 
skilled workers and in the energy sector.

Consumer Spending and Tourism
Consumer spending was reported as mixed, weak, or slowing in nearly all 
Districts since the last report, although tax rebate checks boosted sales for 
some items, especially electronics. Cleveland was an exception to the trend, 
characterizing sales as stable to improving outside of the grocery sector. 
Sales at discount stores were also reported as growing in the Philadelphia, 
Richmond, St. Louis, Dallas, and San Francisco Districts, and New York reported 
brisk sales in New York City. However, sales at most other types of stores, 
especially for discretionary and housing-related items, were typically 
characterized as weak or falling, and restaurant sales were also reported as 
slow in the Philadelphia and Minneapolis Districts. The outlook for retail 
activity was also generally downbeat, with expectations "subdued" among Atlanta 
District contacts and "grim" among Dallas District contacts. Despite sluggish 
overall sales, inventories were reported as largely satisfactory in most 
Districts.

Reports on automobile sales were almost uniformly weak across Districts. Sales 
were especially poor for large vehicles such as trucks, SUVs, and some 
minivans. Indeed, auto dealers in the San Francisco District were increasingly 
reluctant to accept trade-ins of trucks and SUVs due to a lack of a wholesale 
market for these vehicles. Demand for small fuel-efficient and foreign vehicles 
was reported to be solid or increasing in the Philadelphia, Cleveland, Chicago, 
Minneapolis, and Dallas Districts. Dallas reported that consumers were paying 
sticker prices for such vehicles, and that they were in short supply. 

Tourist activity was mixed across Districts. Contacts in the Philadelphia and 
Chicago Districts reported weakness, and San Francisco said travel to Hawaii 
declined noticeably. Atlanta also noted increased hotel cancellations and 
shorter trip durations, although convention business remained strong. By 
contrast, tourist activity to mountain areas of the Richmond, Minneapolis, and 
Kansas City Districts was characterized as stronger, which some contacts 
attributed in part to more residents vacationing close to home due to high 
gasoline prices. New York also reported strong tourism activity in New York 
City, including for Broadway shows and at Manhattan hotels.

Full at:  http://www.cnbc.com/id/25818595
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