The Beige Book Looks at Tennessee

The Fed's periodic Beige Book, surveying economic conditions in various part of the country, came out this week. The Atlanta district covers the economy here in Tennessee, and here's some of what it said:

• Retailers and auto dealers reported very slow sales, and hospitality was at a record low.
• "As demand shifted from restaurants to grocers as a result of safer-at-home practices, some food service supply chains were left with excess inventories while others, such as meat processing and packing, experienced shortages. However, the majority of firms have not increased prices, either due to a lack of pricing power or as a show of goodwill to troubled consumers."
• "Continued declines in discretionary consumer spending was partially offset by sales growth in grocery and household products, office equipment, and home improvement goods. Ecommerce activity continued to accelerate as brick-and-mortar sales continued to decline."
• On the brighter side, financial institutions reported growth in commercial loans as businesses accessed lines of credit and the Paycheck Protection Program (PPP): "Many contacts reported success in securing a PPP loan, which allowed them to avoid layoffs."