Question

Visit the Federal Reserve's Web site.

Website: www.federalreserve.gov (Links to an external site.) (Links to an external site.)Links to an external site.

Hover over the third tab, “Monetary Policy” and click on Reports and then Beige Book to retrieve the summary report for current economic conditions by Federal Reserve District. Select the most current report. Then select the District where you live, have lived in the past, or where you are from originally (go to www.federalreserve.gov/otherfrb.htm (Links to an external site.) (Links to an external site.)Links to an external site. to locate your district).

In the subject of your post, please indicate which district you are writing about (San Francisco District).

What are some highlights of the report regarding Retail Sales, Consumer Spending, Real Estate and Construction, Manufacturing, Labor and Prices, etc. during the most recent period? In your opinion, how did your district perform compared to other districts and the U.S. in general? Given the current state of the U.S. economy, what monetary policy changes would you suggest that would be beneficial to your district at this time and why?

In the subject of your post, please indicate which district you are writing about (e.g. San Francisco District). What are some highlights

of the report regarding Retail Sales, Consumer Spending, Real Estate and Construction, Manufacturing, Labor and Prices, etc. during the most recent period? In your opinion, how did your district perform compared to other districts and the U.S. in general? Given the current state of the U.S. economy, what monetary policy changes would you suggest that would be beneficial to your district at this time and why?

Answer 1

Answer:-

Philadelphia

A. Economic Overview:-

The Economic growth during the current Beige Book period. Nonauto retail sales, tourist activity, manufacturing, and nonfinancial services grew modestly, while new home construction and existing home sales appeared to grow slightly. Little change was noted by contacts in nonresidential construction and nonresidential leasing markets. Auto sales appeared to have declined modestly. On balance, employment, wages, and prices continued to grow modestly. Most firms anticipated continued growth over the next six months, a somewhat higher percentage than during the prior period.

Retail Sales:-

  The repot from 12 Federal Reserve Districts indicated that the economy continued to expand from late November through the end of the year, with 11 Districts reporting modest to moderate gains and Dallas recording a robust increase. The outlook for 2018 remains optimistic for a majority of contacts across the country. Most Districts reported that non-auto retail sales expanded since the last report and that auto sales were mixed. Some retailers highlighted that holiday sales were higher than expected. Residential real estate activity remained constrained across the country. Most Districts reported little growth in home sales due to limited housing inventory. Nonresidential activity continued to experience slight growth. Most manufacturers reported modest growth in overall business conditions. Reports indicated that some manufacturers increased capital expenditures over the reporting period. Most reporting Districts noted continued growth in transportation activity. Loan volumes in many Districts were steady. Among reporting Districts, agricultural conditions were mixed and energy contacts described a slight uptick in activity.

Consumer Spending:-

The country Economic activity continued to grow at a modest pace. The particular for manufacturing, nonfinancial services, and tourism. Nonauto retail sales improved to a modest pace as auto sales slipped to a modest decline. The construction and real estate sectors changed little. On balance, employment, wages, and prices continued to grow modestly.

Real Estate and Construction :-

The home builder report slight growth in activity during the current period. The Commercial contractors focused on Philadelphia noted that 2017 was a strong year and that activity should continue through 2018. New project announcements are needed to extend current activity levels into 2019. Rising lease rates and new construction of industrial/warehouse space continued to be noted in many Third District markets. Essentially, little change was noted in the level of leasing activity, although markets vary significantly by sector and geography.

Manufacturing:-

The manufacturing activity continued at a modest pace of growth. The percentage of firms reporting increases in new orders rose slightly compared with the prior period but changed little for shipments. The makers of paper products, chemicals, primary metal products, industrial machinery, and electronic equipment continued to note gains in new orders and shipments increased activity, marking little change since the prior Beige Book period.

Labor and Prices:

The Prices On balance, price levels continued to rise modestly, although most contacts indicated no change in prices paid and received. The percentage of manufacturing firms reporting increases rose, while the percentage of nonmanufacturing firms reporting increases fell. Retailers and banking contacts reported few signs of inflationary pressure, and builders noted little change to the typical price increases for construction materials. Overall, existing home prices continued to rise, with some variation across markets and price categories.

B. Future changes in the federal funds:-

1. The Committee has expected that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate.
2. The Committee has indicated that it will carefully monitor actual and expected progress toward its inflation goal.
3. The federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation.
4. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.

C. Philadelphia Perform:-

  The Country economic growth Aggregate in the Third District continued at a modest pace of growth. The country most achieving as retail sales, tourist activity, manufacturing, and nonfinancial services grew modestly for compare to other district in US.Philadelphia growth over the next six months, a somewhat higher percentage than during the prior period.