Beige Book Reports Modest, Moderate Growth In All 12 Regions: Car Sales 68 - 35 Weather

Tyler Durden's picture

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...


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.

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Racer's picture


Hmm, somehow that sort of reminds me of something??

ebworthen's picture

Sure FED, just like sales increased and things were "robust" in the ramp up to the 2007 collapse.

If bloated ticks on the head of a dog are a sign of health Fido is doing just great.

"Here boy, here's a bone!  Fetch!"

orangegeek's picture

If nothing else, this shows how pervasive the MSM is.  Like the Politburo is to CCCP TV.


The MSM can take the stupidest fucking one liner and pump so that the rubes out their actually believe it.


"It's the weather"


It makes me puke everytime I hear some MSM blob pump this crap out.


Goebbels would have been proud.

RevRex's picture

It seems that the Socialist Semite Democrat Media stooges were Goebells finest students....

Australian Economist's picture

I heard car sales were up because GM were practically giving them away to people that brought in a recall.


(7 year auto loan, nothing down, bad credit? doesn't matter)


Expect a crash in sales for GM and an increase in bad debt going forward.

maskone909's picture

vehicle sales.  great.  where else is this supposed lending activity taking place?  wasnt their mandate to increase employment!?!?  fuck you beige book. 

agstacks's picture

Does the Fed care if those new car sales were to actual consumers or more already-channel-stuffed-runways?

medium giraffe's picture

Channel stuffing & personal debt are on the rise, price inflation figures still being misreported. 

Ctrl+S, job done, everyone's happy. Hurrah!

Bill of Rights's picture

APNewsBreak: Data discrepancies in health sign-ups

About 1 in 4 people who signed up have discrepancies, creating a huge paperwork jam for the feds and exposing some consumers to repayment demands, or possibly even loss of coverage, if they got too generous a subsidy.

The 7-page slide presentation from the Health and Human Services department was provided to The Associated Press as several congressional committees are actively investigating the discrepancies, most of which involve important details on income, citizenship and immigration status


/face palm /

maskone909's picture

not to worry, congressional comittees are on top of it. 

reminds me of the time i was arrested, went to trial, and sat on my own jury.

agstacks's picture

Obama saw this on the news last night too, and I can assure you, he is very mad about it. 

Eyeroller's picture

If things are so rosey, then why doesn't the FED end the printing and raise rates immediately?

jay28elle's picture

Things are rosey only relative to the 'new normal', not relative to established norms and traditions (not to mention minimums required to grow or sustain life in the country) 

kw2012's picture

Are you kidding? And let Grandma and Grandpa earn interest on their CDs and keep their house without getting a reverse mortage and at the same time, take money away from wallstreet bankers? What type of dystopia are you advocating?

The Most Interesting Frog in the World's picture

ZH, where's the channel stuffing article??????

Kreditanstalt's picture as long as we peasants continue to "buy" overpriced houses and new cars on credit everything is coming up roses, right?

Hell of an "economy"...

ShrNfr's picture

More junk debt for autos. The serfs are broke.

Inthemix96's picture

How do you know you cant afford something?

You havent got the 'Money', to buy it.

Think about it.

Thats where the 'Debt' and more importantly the 'Interest' comes in.

Think about it.


Racer's picture

". high or rising prices for ...........and precious metals"

Not now that they have hammered it back down again

Kreditanstalt's picture

Stocks rise the pre-determined amount in the off hours or on opening.  Then they cruise along on autopilot at the new elevated level until the 3:30 ramp.

Rinse and repeat.  Day after mind-numbingly counterintuitive day of desperate, short-termist yield-seeking.

semperfi's picture

Beige Book - fiction novel

Chuck Knoblauch's picture

Car manufacturing may be robust, but what about car sales to non-dealerships?

AdvancingTime's picture

They have been pushing on this string for a long time. Many of the new cars hitting the road are really leases which show up as a sale, and many of them may be motivated because an automobile owner faced with a costly repair may be oping for this alternative verses putting money they do not have into their current ride.

This allows someone in a weak financial position, such as those living on disability or student loans, to kick the can down the road while putting themselves into an ego boosting vehicle, one that they cannot in reality afford, or need. I contend that super low artificial interest rates are making much of this possible. If I'm correct, much of the idea of "so called pent up demand" is secondary. More on this subject in the article below.

TomGa's picture

FED = "Falsified Economic Data"


Caveat emptor.

Kaiser Sousa's picture



Colonel Klink's picture

Yeah, yeah but until it happens it's just a hollow cost.

Kristian's picture

The US economy is in recovery, however it can't stand bad weather and a 0.5% decline in the stock market.

Actually make that 0.2% 

Colonel Klink's picture

I'll continue to spend as little as possible to support this paper recovery.

AdvancingTime's picture

Robust auto sales may not be such a good sign when you look at who the buyers are!  A big shift is occurring in what consumers are buying. Recently we are witnessing a shift from general consumer goods to more purchases of autos and healthcare. The first quarter GDP just came out down 1% yet these two sectors have been outperforming the economy. 

If indeed online and auto sales are roaring up double digits at the same time healthcare spending has increased 4.2% it is only fair to assume small business and someone else is getting their ass kicked. Interestingly, this is all occurring as the government continues to pour out billions of dollars each month in student loans, many of these loans will never be repaid. This can be viewed as more proof we are on the wrong path, more on this subject in the article below.