The latest edition of the Fed's Beige Book - a report on the U.S. economy, issued eight times a year - found the two districts that cover New Jersey moving in slightly different directions. The New York district was one of eight in which economic activity has generally improved, but the Philadelphia district was one of four that reported either little-changed or mixed economic conditions.
What's different between the two? One area is car sales. The northern half of the state has remained strong in auto sales after the end of the Cash for Clunkers program, but the southern half continues to be plagued by dealer closings. Commercial real estate on the New York side wasn't especially good - "steady to moderately weaker" was the phrase they used. But on the Philadelphia side, commercial real estate is still just plain weak.
Nationwide, the bright spots remain consumer spending and manufacturing, which has benefited from a rise in exports because of the falling dollar. Housing and employment both look better than they have been. The bad news: Lending conditions are still extremely tight, and the commercial real estate market looks worse than ever.
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