The Beige Book, published eight times annually, compiles anecdotal information on current economic conditions from each Federal Reserve Bank's District. This data is gathered through reports from Bank and Branch directors, interviews with key business contacts, economists, market experts, and other sources.
Recent economic activity expanded modestly. Employment remained flat amid slow wage growth, while prices saw a slight increase. Tourism activity rose moderately, retail sales edged up but generally stayed subdued. New automobile sales increased, manufacturers reported modest revenue growth on average, and software and IT services firms experienced moderate revenue gains. Residential home sales grew year-over-year due to improved inventory levels. Commercial real estate activity was stable overall with steady industrial leasing and increases in the retail sector; however, office property outlooks weakened as foreclosures are expected to rise.
Labor markets showed no change in employment overall with slight wage increases. Labor demand held steady, with some improvements noted in the available labor supply in sectors like retail and tourism. Cape Cod reported normal levels of foreign-born workers through short-term visa programs supporting seasonal labor demand. Boston hotels also noted a normalization of labor supply across the city. Automotive mechanics remained in short supply in New Hampshire, particularly for collision repair workers. Manufacturers reported little change in finding qualified workers but noted hiring remains more challenging than pre-pandemic times.
Prices increased slightly on average with mixed movements in input costs. Most manufacturing contacts observed small increases or no changes in input costs and finished prices; one seafood manufacturer reported declines in both areas. An online retailer's input costs remained stable despite shipping lane pressures. Hotel room rates rose moderately year-over-year in Greater Boston but remained flat on Cape Cod compared to last year. Software and IT services saw slight price increases during the second quarter.
Retail and tourism sectors experienced slight growth recently while tourism contacts noted moderate growth net of seasonal factors. An online retailer faced pressure to offer discounts on lower-cost items but saw an uptick in higher-end product sales. New vehicle sales increased for automotive dealers in New Hampshire along with strength in recreational segments like RVs and ATVs. Mainstreet retailers on Cape Cod had a slightly above-average start to the season with fewer store vacancies than recent years.
Manufacturing revenues rose modestly through the second quarter with slight demand increases across firms despite mixed results regarding input costs and sale prices. Wages rose slightly among manufacturers who also maintained level headcounts without recent employment growth.
Software and IT services firms reported stable demand and continued moderate revenue growth recently with small price increases for products and services noted by two contacts.
Commercial real estate activity was flat overall with typical summer slowdowns seen in office leasing which fell significantly low in Hartford, CT.
Residential real estate contacts reported annual inventory growth across Rhode Island, Maine, Vermont, and New Hampshire although Massachusetts' inventory levels were comparable to last year’s figures.
For further details about District economic conditions visit: www.bostonfed.org/regional-economy.
All Beige Book content since 1996 can be found at the Board of Governors website.
The Minneapolis Fed hosts Beige Book archives by district dating back to 1970.
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