The Beige Book rarely matters but around economic turning points it can be a market mover.
- Retail sales, including autos, remained mixed; sales of discretionary items and durable goods, like furniture and appliances, declined, on average, as consumers showed more price sensitivity.
- four Districts reported modest growth, two indicated conditions were flat to slightly down, and six noted slight declines in activity
- Demand for transportation services was sluggish
- Manufacturing activity was mixed, and manufacturers' outlooks weakened
- Consumer credit remained fairly healthy, but some banks noted a slight uptick in consumer delinquencies
- The economic outlook for the next six to twelve months diminished over the reporting period.
- Price increases largely moderated across Districts, though prices remained elevated
- Most Districts expect moderate price increases to continue into next year.
- Demand for labor continued to ease, as most Districts reported flat to modest increases in overall employment
- Several Districts continued to describe labor markets as tight with skilled workers in short supply
- Full report
This fits in completely with the dovish theme that's been emanating from Fed speakers. The economy is slowing, prices are coming down and the labor market is cooling off. The dollar is selling off further on the headlines.
