4 Key Takeaways from Today’s Beige Book Report (Hint: They’re Not All Bad)

The Federal Reserve just released the December 2008 Beige Book which is a review of the current economic conditions. And just as most of us suspected, it ain’t pretty.

That said, we’re all for balance here at BankInnovation.net, so we’ve isolated four key takeaways from the Beige Book report released today, two good, two not so good:

1. Overall Economic Weakness. There was not a Federal Reserve District which offered good economic tidings last month, the report found. All districts experienced declines in consumer spending and tourism; services; manufacturing; real estate and construction; banking and finance; and labor markets. That about covers the entire economy.

2. The Weakest Link: Manufacturing. The report noted that manufacturing activity declined most notably since the last report.

3. Ag, a Bright Spot. A bright spot: — if you can even really call it that – was agriculture and natural resources, which saw mixed results by districts. The Fed banks in Chicago, St. Louis, Minneapolis, Kansas City and Dallas even expect decent harvests in the spring.

4. Some Pricing Relief. Retail and some input prices eased some since the last Fed survey. The Beige Book reported decreases in prices for energy and fuel, and many raw materials and food products, for example.

Read the full report here.