Feb Beige Book July 2016
From Fed web site
Reports from the twelve Federal Reserve Districts indicate that economic activity continued to expand at a modest pace across most regions from mid-May through the end of June. Business contacts in Cleveland reported a steady level of activity, while Minneapolis reported that activity increased at a moderate pace. Labor market conditions remained stable as employment continued to grow modestly since the previous report and wage pressures remained modest to moderate. Price pressures remained slight. Consumer spending was generally positive but with some signs of softening. Manufacturing activity was mixed but generally improved across Districts. Real estate activity continued to strengthen, and banks reported overall increases in loan demand. Agricultural activity was mixed but generally improving. The natural resources and energy sector has remained weak. The outlook was generally positive across broad segments of the economy including retail sales, manufacturing, and real estate. Districts reporting on overall growth expect it to remain modest.
Financial Institutions Lending activity grew moderately over the reporting period. Contacts reported moderate, broadbased growth in loan demand by businesses and consumers. However, consumer demand for revolving credit eased slightly. Deposit growth at banks was strong, with ample liquidity reported. Credit quality continued to improve. Overall, credit remained readily available; however, a few contacts reported that valuations for some technology companies had declined, tightening the supply of credit available to small and mediumsized businesses in that sector. Contacts noted that regulatory and cybersecurity costs and the current low interest rate environment held down net margins and profitability somewhat.
