The Fed’s latest Beige Book business survey, which takes the pulse of economic activity across each of the nation’s Federal Reserve Districts, came out yesterday afternoon. It declared that that the U.S. economy as a whole has seen “modest to moderate” gains, except in one district. That outlier is the 11th District, home to the Federal Reserve Bank of Dallas, which has seen “strong” growth since the last survey (in April):
The Eleventh District economy expanded at a stronger pace over the past six weeks than in the previous reporting period. Manufacturing activity increased overall, and many contacts were more optimistic in their outlooks. Retail sales activity improved during the reporting period, and auto sales held steady. In the nonfinancial services sector, demand for accounting services was strong, legal firms reported modest growth, and most transportation services firms noted improvement. Staffing services contacts said demand was steady. The housing sector continued to improve, with further gains in sales and construction. Office and warehouse leasing activity remained steady. Financial institutions noted modest growth in loan demand, and energy activity improved during the reporting period. Drought conditions worsened across the Eleventh District. Prices remained stable at most firms, and employment levels were steady.
Except for the drought — and the prospect of all of Texas withering away some day for lack of water — seems pretty, pretty good.