Web Exclusive:<br>Summary Plus Real Estate And Construction-Related Excerpts From The Fed's Jan. 15
Prepared at the Federal Reserve Bank of Chicago based on information collected before February 24, 2003. This document summarizes comments received from businesses and other contacts outside the Federal Reserve System and is not a commentary on the views of Federal Reserve officials.
The Federal Reserve's "Beige Book" is a summary of economic conditions reported by businesses in informal surveys conducted by the 12 Federal Reserve Banks around the country (which are referenced by number and name of the headquarters city). Following are the opening paragraphs from the national and regional summaries, plus any construction- or real estate-related comments. Click on the links shown for the full Beige Book or regional report. If you are not yet receiving regional construction excerpts and want to, send an email to simonsonk@agc.org listing the states for which you want regional excerpts. (Some states are split between two banks; both bank reports will be sent to those state lists.)
Consumer spending remained weak, on balance, with a few Districts noting a little improvement and others indicating a slight deterioration. Business spending was very soft, with little change in capital spending or hiring plans. Nearly all Districts indicated that real estate and construction activities were mixed, with strength on the residential side and weakness on the nonresidential side. Most Districts still described manufacturing activity as weak or lackluster, although half of the reports noted at least some degree of improvement. Refinancing activity continued to drive growth in household loans, while business loan demand remained weak. Contacts in most Districts expressed concern over rising energy and insurance costs, but noted that businesses had difficulty passing along much, if any, of the cost increases to their customers. The agricultural sector continued to be affected by poor weather in many Districts. Mining and energy extraction activity picked up, but energy production was limited by supply problems and some shortages of skilled labor.