FOMC Beige Book: The Margin Squeeze Is Everywhere

Tyler Durden's picture

The key highlights, in which we read that yes, the margin squeeze is here.

  • Non-wage input costs increased for manufacturers and retailers in most Districts.
  • Retailers in some Districts mentioned they had implemented price increases or were anticipating such action in the next few months
  • Manufacturers, in a number of Districts reported having greater ability to pass through higher input costs to customers. (oh really, good luck)
  • Most reporting Districts noted continued strong agricultural commodity prices.
  • Wage pressures remained minimal across all Districts; although Philadelphia, Dallas, and San Francisco noted that most wage increases were for workers with specialized skills.

And some other highlights,in which we find that things were oddly good despite all the snow scapegoating:

  • Homebuilders in Cleveland and Atlanta had limited ability to pass through cost increases to buyers.
  • Reports from the twelve Federal Reserve Districts indicated that overall economic activity continued to expand at a modest to moderate pace in January and early February.
  • Chicago reported that although there was an increase in activity, it was at a pace not quite as strong as during the previous reporting period.
  • Retail sales increased in all Districts, except Richmond and Atlanta, although Boston, New York, Philadelphia, Atlanta, and Kansas City noted that severe snowstorms had a negative impact on merchant activity.
  • Some Districts reported a slight increase in the level of residential real estate activity, although all Districts maintained that the overall level of home sales and construction remained low.
  • Several Districts indicated improvements in commercial real estate sales and leasing activity, including Boston, Richmond, Chicago, Kansas City, Dallas, and San Francisco.
  • Most reports characterized nonresidential construction as weak.
  • Changes in loan demand were mixed across Districts, with Richmond, Dallas, and San Francisco experiencing increased loan demand and Kansas City noting a decrease.
  • All Districts, except St. Louis, experienced solid growth in manufacturing production, and new orders improved for Philadelphia, Atlanta, Chicago, Kansas City, and San Francisco.
  • Most regions observed an increase in nonfinancial services.

Beige Book (link)


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Bearster's picture

The operative concept is "margin squeeze" not "cost-push inflation"

unununium's picture

CNBC shamelessly trotted out some rumpled woman today who said that corporate profit margins are expected to expand.

alien-IQ's picture

wages down, prices up, unemployment near record levels with no sign of letting up and these monkeys think that anybody is gonna be able to pass along price increases to consumers with no problem?...What the fuck have they been smoking and where oh where can I get some?

SWRichmond's picture

It's the wage-price spiral without the wages.

NotApplicable's picture

Nah, they're out there. Just ask any bankster on Wall St.

They've aggregated them, that's all.

Sudden Debt's picture





TheMerryPrankster's picture

and we're all special in our own ways, until we're not anymore and nobody wants to play with us anymore.

The only real mad skill is being well connected and being born well usually helps. It's like World of Oligarchy, the only game that keeps playing itself even when you unplug the computer.

Milton Waddams's picture

Is the cat out of the bag on QE now?

Bernanke has been much less opaque about the intentions QE lately.

In fact he has clearly stated that QE pushes people into the corporate debt and stock market.

He has also stated that capping rates applies a sort-of penalty on idle cash and therefore an incentive to use it to consume or invest.

Will the MSM pick up on this???

Bansters-in-my- feces's picture

Tricks are for rabbits,and ya gotta love dem peshky shnow shtorms.

cougar_w's picture

Fuel costs in the next quarter will by summer bitch-slap manufacturing and retail.

Fuel availability problems could drive a stake through their collective heart.

Dick Darlington's picture

Don't worry fellas. Don't worry abt the little things such as food or gas or shelter or job. New iPad is here!

destraht's picture

Have you seen the new soup app? When you move the iPad around the bowl sloshes like real soup so that you can pretend that you have something to eat. Further research needs to be done to determine the long term effects of what some are calling iSoup.

JW n FL's picture

The Printing and Beatings of the U.S. Dollar will continue.. UNTIL! MORAL!! IMPROVES!!!

10kby2k's picture

5 year TIPS back to   -0.49%.  That market is just screaming that the world isn't right.  

flaunt's picture

I've never actually looked at the text of one of these reports before... Are they always so vague and without quantification?

ghostfaceinvestah's picture

No worries, the govt will rachet down the "Owners Equivalent Rent" portion of CPI so it will reflect zero inflation and give Benocide the cover he needs to continue printing.

cossack55's picture

I'm sure I am not the first to suggest that it should be titled "The Brown Book" for obvious reasons.

trendybull459's picture

Consume futher greedy americans to support Ancle Sam enterprices,you are really deserve what you do get!!Its just real fun to watch how this braionwashed nation can not stop filling own bellies with crap feeded to them.Stop consuming,cut expences,take your money out from greedy banks which do use this money as collateral to speculate against you and to pump prices,ride less car,use buses,cut on whatever you can,stop this habbit of overspending,the only thing Buffets want from you is that you spend,keep money under matraze,in any case if it becomes worthless so its not so pitty and strike,have your opinion,why people who stalled your freedoms use your brainwashed habbits futher,what should happend to make you awake such a lazy people,you waiting when you will be disable fizically???Well,it was your choise to vote for "change",now you got it,try to buy on this change something-WoW,start thinking,take off the fat from your brains,awake Amerika,the whole World is suffering because your government freaky and robbery policies!Watch movie of the Michael Moore about how you are got into this sheet

perchprism's picture

Why don't you learn how to write a legible sentence, then come back?  Stay away until you do.

Oh yeah, read something of value once in a while instead of watching nonsense films directed by commies.

Creed's picture

As soon as you mentioned lard ass Moore you brought it all together for me, F.O.A.D.

trendybull459's picture

It looks that "new normal" today will be in the way when corporations buying each from other some group of the things,but whom would they sale on?Final consumer has any geld?Thoose who are very sensative to mr.Moore who is late on "Inside Jobs",but still supportive to general information space,all of you can go and study a little bite how to behave,you still dreaming,but time is ticking against all of you dreamers,you still hoping on somehow fixed economy,while police state strengthening own forces in order to capture your free will.While being in Dover in England custom officer asked me about my language skills and i said:its very very poor....

"Do not worry,one who really knows language will allways understand you,but one who is ASS,allways will try to tell you how wrong you are,because he himself wrong too......" i learned it and thankfull to all my english teachers....

Currently USA,England and Russia working on greates internet project"Inside Internet" which will be smoothly incorporated into current internet,but all information would be channeled and every click confirmed,there will be only knews Big Brothers want us to see and every one will wonder why he either can not find usual internet address which he used before.just for your future information,then you can make your comments about language.......

There are some people who coming to this site and do knows nothing on reality of the crisis,in the comments posted after this movie on very international site general opinion is that it simple clear and very usefull for thoose who are totally ou of order about system within which their leaving,many of the americans can not make simple mathematical operations,they so adopted that they can ask about it a policeman and its good policies of this site owners to put mathematical task at the message posting,Vivat Revoluzion!

trendybull459's picture

I know,you are jelouse about my sexy body,but its a good cloning work of american stemsell production companies,soon,america will not be need working forse,they will able to grow army of barocamera grown humanity with chip in the body to supply major functions to do comands

trendybull459's picture


about F.O.A.D,you absolutly right,but i think we need to leave only D :))))))))))))))))))))),because they even did not left to you F.O. so A unnecessary ,they polarised women to be just money mashines,if you paid attention the President Carter said obviouse,our values became not we are,but what we have and its FOAD,very sad,but only DIE

Xkwisetly Paneful's picture

Finally a cure for the US obesity epidemic?

TheMerryPrankster's picture

solylent green, I'm soaking in it right now.

Its like hamburger helper without the hamburger, so its mostly helper and some cowlips and preservatives.

TheMerryPrankster's picture

Is there a sandwich in your future?