Despite Its Unusual Name, the Beige Book Offers a Valuable Look at Hiring, Consumer Spending, and Business Conditions Across the Country
Before this morning, most readers had probably never heard of the Beige Book. To be honest, the Blue Book used for car values is probably much more familiar to most people. Despite its unexciting name, the Beige Book is one of the more interesting reports released by the Federal Reserve because it focuses on what businesses are actually experiencing rather than just the numbers.
The Federal Reserve released its latest Beige Book today, offering a snapshot of what businesses across the country are seeing when it comes to hiring, consumer spending, wages, and overall economic activity.
After reading the national summary, my takeaway is that the economy continues to move forward, but at a modest pace. Businesses generally reported slight growth, while hiring remained relatively steady. At the same time, many contacts expressed concerns about rising costs, particularly energy-related expenses, and noted that consumers are becoming more selective with their spending.
One thing I found interesting is that the Beige Book often reads differently than the economic headlines. While reports such as the Automatic Data Processing (ADP) Employment Report, the Job Openings and Labor Turnover Survey (JOLTS), and Friday’s Employment Situation Report focus on numbers, the Beige Book focuses on what businesses are actually saying. This month’s comments suggested an economy that is still growing, but one where uncertainty remains elevated.
Some readers may come away from the report feeling encouraged by the continued growth and stable labor market. Others may focus on the references to cautious consumers, higher costs, and concerns about future business conditions.
You can read the Beige Book for yourself here:
https://www.federalreserve.gov/monetarypolicy/publications/beige-book-default.htm
What do you think? Are the Fed’s observations consistent with what you’re seeing in your community, workplace, or household budget?
As for me, I’ll be watching Friday’s Employment Report to see if it tells a similar story. And if someone offers me a part-time morning job near BART before then, I may have to admit the labor market is stronger than I thought.
Thank you for reading Good Eye Mike. Willie and I appreciate every reader and look forward to seeing you again on Friday for the May Employment Report.
While we wait for the Beige Book, Automatic Data Processing (ADP) reported that private employers added 130,000 jobs in May, with hiring spread across several industries.
The Federal Reserve will release its latest Beige Book at 11:00 a.m. Pacific today. Unlike many economic reports that focus on statistics, the Beige Book summarizes what businesses across the country are saying about hiring, wages, consumer spending, and economic conditions.
While we wait for that report, Automatic Data Processing (ADP), one of the nation’s largest payroll processors, reported that private employers added 130,000 jobs in May. Hiring gains were spread across several sectors, suggesting job growth was not limited to healthcare and social assistance. By this report it looks like Willie and I better get online and start looking for that part time gig!
ADP Employment Report:
https://adpemploymentreport.com/
Please check back later this morning as I review the Beige Book and look for insights into hiring, inflation, consumer spending, and overall business conditions across the country.
Thank you for reading Good Eye Mike. Willie and I appreciate every reader and look forward to seeing you again later this morning.