Twelfth District Beige Book

Economic activity in the Twelfth District expanded slightly during the mid-November through December reporting period. Employment levels were largely unchanged, and employee retention improved further. Wages were up slightly overall, and year-end pay increases were in line with historical averages. Price levels were generally stable in recent weeks. Retail sales grew modestly as contacts reported a solid holiday shopping season. Consumer and business services sectors saw steady to slightly higher activity over the reporting period. Manufacturing activity varied by product category, while conditions in the agriculture and resource-related sectors softened slightly. Residential real estate markets were stable overall, and commercial real estate conditions were mixed. Lending activity was steady. Demand for services related to affordable housing, food assistance, and mental health remained high from communities across the District. Contacts’ economic outlook worsened slightly relative to the prior reporting period.

Economic activity in the Twelfth District was stable on balance during the October to mid-November reporting period. Employment levels were largely unchanged, and employee turnover was stable in recent weeks. Wages and prices increased slightly overall. Retail sales and activity in the consumer and business services sectors held steady over the reporting period. Activity in the manufacturing sector increased a bit, while conditions in the agriculture and resource-related sectors softened slightly. Residential real estate conditions improved somewhat, and commercial real estate conditions were varied but stable. Activity in the financial services sector ticked up in recent weeks. Demand for assistance with affordable housing, health-care services, and food remained high from communities across the District. Looking ahead, contacts overall expressed slightly more optimism about economic conditions.