The Latest From the Beige Book

The Fed's Beige Book, reporting on economic conditions around the country, was released yesterday (and if you're thinking that this comes out somewhat irregularly, you're right - it comes out eight times a year). As always, the news on New Jersey is divided between the New York office, covering the northern half of the state, and the Philadelphia office, covering south Jersey.

Many of the reports from those two offices were in sync this time around. For instance, the commercial real estate market showed "practically no change in market conditions" in Philadelphia, while the New York office reports that commercial real estate has "generally been steady."Manufacturing appears to be picking up slightly in both regions. Overall, the northern half of the state reports that the economy "continues to expand at a modest pace," while the southern half says the business outlook is "positive, but not robust."

One interesting note: The Beige Book reported that although consumer spending was up slightly, it was mostly limited to necessities and non-discriminatory items, and consumers remained very price-sensitive. Separately, it noted that wholesale prices had been rising, but those costs had not been passed along to the consumer. One reason that inflation has been kept in check, perhaps, is that the consumer just won't stand for it.

To read more of the latest Beige Book report, click here.