This ‘Beige Book’ looks blue

There was plenty of gloom in the latest Federal Reserve report of business conditions (the “Beige Book”), out today. The Fed survey found that economic activity has been “slow” in most parts of the country, and has “softened” since the last report here in the Fed’s St. Louis-based Eighth District, which includes parts of six states.

The local report found declining activity in services and manufacturing, flat retail sales, a fall in auto sales, a continued slump in home sales and construction and mixed reports in commercial real estate. Lending, too, is down.

While a few sectors in manufacturing and services had perked up - among them plastics-making, furniture and auto parts manufacturing, warehousing and transportation - the bad news was quite widespread. About 80 percent of car dealers reported fewer sales than a year ago, for instance, and firms in many sectors of the economy announced plans to consolidate plants or lay off employees.

Retail sales were bright spot, sort of. Half of retailers saw sales increase; 39 percent fell. Essentials and staples were strong while luxury goods were weak. About 54 percent of retailers said they expect sales to grow in the fall.

Read the full report here. But be forewarned, it’s something of a downer.

And listen to commentary from Fed economist Howard Wall, here.