The Cleveland Federal Reserve Bank has introduced a new tool that provides near-real-time data on business conditions in its service region. This tool, developed from the Summary of Regional Conditions and Expectations (SORCE), offers insights into demand, prices, costs, employment, wages, capital expenditures, and future expectations within the Fourth Federal Reserve District.

"SORCE data is timely: It’s collected every six weeks and will be released roughly three weeks later, soon after the release of the Beige Book." The current dataset covers 2014 through 2024 and highlights trends such as the economic downturn during COVID-19 followed by a recovery phase.

The SORCE indexes have been instrumental for over a decade in informing the Cleveland Fed’s Beige Book and monetary policy efforts. "They reveal what businesses in the Federal Reserve’s Fourth District are saying about demand, prices, costs, employment, wages, capital expenditures, and future expectations."

Data collection involves surveys conducted among business and community leaders across Ohio, western Pennsylvania, eastern Kentucky, and northern West Virginia. The next update is scheduled for March 5.

As one of 12 regional reserve banks forming part of the US central bank system alongside the Board of Governors in Washington DC., the Cleveland Fed plays a vital role in monetary policy formulation. It also supervises banking organizations while providing payment services to financial institutions and performing various support activities for Federal Reserve operations nationwide.

"The public can now access near-real-time data on regional business conditions using a new Cleveland Fed charting tool built from the Summary of Regional Conditions and Expectations or SORCE," states Chuck Soder from Cleveland Fed's communication team.