April Fed Beige Book
Here are the highlights without the media spin. Stagflation exists and there is an encouraging undercurrent of organic economic activity. Prices are rising and some economic slowing is being seen due to stagflation in the distribution chain.
Consumer Spending and Tourism
Improving retail sales overall, but several districts had flat or disappointing results. Retail selling prices reasonably stable to date, some contacts cited evidence of increased prices and pricing power.
Service Industries
Demand for trucking and shipping services in several Districts reportedly eased somewhat. Philadelphia reported increased trucking activity despite higher freight rates.
Manufacturing
Production or orders were rising. Strong or rising demand for various durable goods. Rising costs for a variety of inputs, most notably energy, transportation, petrochemicals, and other petroleum-based products.
Energy
The U.S. rig count is at the highest level since 1986, and drilling plans are increasing faster than predicted earlier this year. Dallas contacts report that producers are turning their attention to coal-bed methane, tight gas, tar sands, and gas shale.
Prices and Wages
Upward price pressures have strengthened, actual increases to date in vendor prices and selling prices are moderate. In two-thirds of the Districts, retail or tourism contacts expressed concern that high energy prices were already, or could soon be, damping consumer demand. Distribution (shipping, trucking, freight, delivery) firms and utilities shared similar apprehensions.
April FED Beige Book Report
Consumer Spending and Tourism
Improving retail sales overall, but several districts had flat or disappointing results. Retail selling prices reasonably stable to date, some contacts cited evidence of increased prices and pricing power.
Service Industries
Demand for trucking and shipping services in several Districts reportedly eased somewhat. Philadelphia reported increased trucking activity despite higher freight rates.
Manufacturing
Production or orders were rising. Strong or rising demand for various durable goods. Rising costs for a variety of inputs, most notably energy, transportation, petrochemicals, and other petroleum-based products.
Energy
The U.S. rig count is at the highest level since 1986, and drilling plans are increasing faster than predicted earlier this year. Dallas contacts report that producers are turning their attention to coal-bed methane, tight gas, tar sands, and gas shale.
Prices and Wages
Upward price pressures have strengthened, actual increases to date in vendor prices and selling prices are moderate. In two-thirds of the Districts, retail or tourism contacts expressed concern that high energy prices were already, or could soon be, damping consumer demand. Distribution (shipping, trucking, freight, delivery) firms and utilities shared similar apprehensions.
April FED Beige Book Report
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