Beige book gives gloomy picture

The Fed’s regular roundup of economic anecdotes, the Beige Book, gives a pretty gloomy picture of the economy both nationwide and here in the St. Louis-based Eighth District of the Federal Reserve.

In most parts of the country, consumer spending was down in September, as was factory work. Services suffered a decline, too. Agriculture was one sector of the economy that showed some improvement.

The picture was similar in the Eight District, which includes part or all of seven states around St. Louis. Manufacturing activity in the region declining, with factories facing higher prices and less demand. Some factories said they were planning to expand, though more predicted contraction.

Many service-sector companies predicted decline in business, with demand weakening. Retailers reported sales volume as fairly constant but consumers shifting to lower-priced products. Auto sales were actually up slightly, particularly among dealerships offering incentives and rebates.

Real estate sales continued to fall though commercial construction was more mixed. Industrial real estate in St. Louis remains stable, the report said. Business lending declined slightly while loans to individuals rose.

Click here to see the report itself, and here for a commentary on it by Howard Wall, an economist at the St. Louis Fed.