Employment Research

The Beige Book is a Federal Reserve System publication about current economic conditions across the 12 Federal Reserve Districts. This summary provides the May report from the Eighth District, headquartered in St. Louis.

• Employment increases were modest in the District, but survey respondents are optimistic. Forty percent of contacts expect third-quarter employment to be higher or slightly higher than a year ago.
• Consumer spending is mixed: General retailers reported modest sales growth, but 63 percent of auto dealers reported a reduction in year-over-year sales.
• Most manufacturing contacts reported that production, new orders, and capacity utilization increased in the second quarter relative to one year ago, and 65 percent expect further growth in these areas.
• Residential real estate activity has declined, with inventory shortages cited as a hindrance to sales, particularly in Louisville. Residential construction and commercial real estate activity improved modestly. Commercial construction activity remained robust, and contacts reported an increase in multifamily and industrial construction.
• Banking contacts noted strong growth in demand for business and mortgage loans.
• Flooding across the District was blamed for deteriorating agricultural conditions. The current pace of cotton, corn, rice, and soybean planting is below last year’s pace.