The Beige Book was a slightly less boringly beige report than normal as all 12 regions say growth was "modest or moderate" - up from 8 of 12 in April...
- *FED SAYS NEW VEHICLE SALES `WERE GENERALLY DESCRIBED AS ROBUST'
- *FED SAYS `OVERALL LENDING ACTIVITY INCREASED THROUGHOUT' U.S.
- *FED SAYS `PRICE PRESSURES WERE SAID TO BE CONTAINED'
Weather remains an issue with 35 mentions (119 in Feb and 103 in April) but May was the month of exuberant car sales with 68 mentions of the growth and optimism.
Some of the report highlights:
We still had harsh weather in May apparently:
... lingering wintry weather in the Northeast continued to weigh on sales in parts of the Boston and New York Districts.
Which is why retail sales were hardly strong:
... Non-auto retail sales grew at a moderate pace across most of the country.
And housing wasn't up to snuff either:
... Residential real estate activity was mixed across the country... Homebuilders gave mixed reports on new home sales and construction in recent weeks...
But that's ok: courtesy of soaring discounts, and Uncle Sam car loan glut, Americans can now live in their cars:
... Increasingly strong new vehicle sales were reported by more than half the Districts, with most other regions seeing steady sales; demand was generally reported to be less robust for used vehicles than for new vehicles.
In other news, don't hold your breath for a raise:
... In most Districts, wage increases have remained generally subdued, though Chicago and Dallas noted increased costs for health benefits
But that's ok, because prices are apparently stable:
... Price pressures were said to be contained, as most Districts reported that both input and finished goods prices were little changed or up only slightly since the previous report
Unless you have to eat or drive that is:
... high or rising prices for some agricultural commodities, construction materials, energy products, and precious metals were cited by some Districts.
Or buy health insurance:
an increase in the cost of health insurance was noted in Chicago and Dallas
Then you are out of luck.
Aside for all of this, the US economy as represented by the manipulated stock market, has never been stronger.