The Federal Reserve's regularly-scheduled pre-FOMC report on regional conditions was released yesterday. (A permanant link has been added to the left.) Bottom line?
Reports from the Federal Reserve Banks indicated that economic activity continued to expand in late July and August, although several districts indicated that the pace had slowed since their last reports.
No big surprise there, but the report does provide some insight into why many agree with the Chairman's claim that "The most recent data suggest... the expansion has regained some traction." Here's the (mostly) good news:
Conditions in the manufacturing sector... improved further nationwide, especially among capital equipment and other durable goods makers...Demand for consumer loans softened somewhat, but several districts noted increased commercial lending. Employers in most districts continued to expand payrolls, though districts reported some unevenness across sectors. While persistently rapid increases in nonwage labor costs continued to be a concern for many employers, wage pressures remained modest. Consumer prices were generally flat or up modestly...