Fed's Beige Book Indicates Expanding Economic Activity During Holiday Season

According to the Federal Reserve’s Beige Book, reports “from the twelve Federal Reserve Districts suggest that national economic activity continued to expand during the reporting period of mid-November through late December, with most Districts reporting a ‘modest’ or ‘moderate’ pace of growth.”

The Dallas District was highlighted in the report as “growth slowed slightly during the reporting period and that several contacts expressed concern about the effect of lower oil prices on the District economy.”

The report noted that the “Kansas City District reported only slight growth in December. However, most of their contacts, along with those of several other Districts, expect somewhat faster growth over the coming months.”

Consumer spending, travel and tourism, auto sales and manufacturing activity increased in most areas.

Single-family residential real estate sales and construction were observed to be largely flat, while commercial real estate activity expanded.

Overall demand for energy-related products and services weakened somewhat, while the output of energy-related products increased.