Beige Book: Weather having a big effect, but economy continues to grow


The effects of severe winter weather are evident throughout the economy, says the Fed Beige Book, but nevertheless, the expansion continues.  Eight districts reported improved levels of activity, mostly characterized as modest to moderate. New York and Philadelphia experienced slight declines in activity thanks to the weather. Growth slowed in Chicago and Kansas City reported stable conditions.

Retail sales weakened in most districts, again thanks to the weather, which somehow skipped Cleveland as it reported strong gains. Residential real estate continued to modestly improve in several areas, but Philadelphia, Cleveland, Minneapolis, and KC noted a decrease in sales.

Comments (8)
  • db313706
    , contributor
    Comments (223) | Send Message
     
    Just business as usual here in CLE. Weather be damned.
    5 Mar 2014, 02:11 PM Reply Like
  • mobyss
    , contributor
    Comments (2633) | Send Message
     
    What do they say - when you have to talk about the weather you really have nothing to talk about? It sounds like the Fed is running out of explanations, running out of excuses.
    5 Mar 2014, 02:23 PM Reply Like
  • Alexmaniam
    , contributor
    Comments (68) | Send Message
     
    Yep it's the weather until... 'it's economy, stupid' !
    5 Mar 2014, 03:17 PM Reply Like
  • Minutemen
    , contributor
    Comments (2287) | Send Message
     
    The following dialogue from the classic 1979 Peter Sellers (as Chance the Gardener) film captures it perfectly:

     

    President "Bobby": Mr. Gardner, do you agree with Ben, or do you think that we can stimulate growth through temporary incentives?

     

    [Long pause]

     

    Chance the Gardener: As long as the roots are not severed, all is well. And all will be well in the garden.

     

    President "Bobby": In the garden.

     

    Chance the Gardener: Yes. In the garden, growth has it seasons. First comes spring and summer, but then we have fall and winter. And then we get spring and summer again.

     

    President "Bobby": Spring and summer.

     

    Chance the Gardener: Yes.

     

    President "Bobby": Then fall and winter.

     

    Chance the Gardener: Yes.

     

    Benjamin Rand: I think what our insightful young friend is saying is that we welcome the inevitable seasons of nature, but we're upset by the seasons of our economy.

     

    Chance the Gardener: Yes! There will be growth in the spring!

     

    Benjamin Rand: Hmm!

     

    Chance the Gardener: Hmm!

     

    President "Bobby": Hm. Well, Mr. Gardner, I must admit that is one of the most refreshing and optimistic statements I've heard in a very, very long time.

     

    [Benjamin Rand applauds]

     

    President "Bobby": I admire your good, solid sense. That's precisely what we lack on Capitol Hill.
    5 Mar 2014, 03:33 PM Reply Like
  • mobyss
    , contributor
    Comments (2633) | Send Message
     
    "I think what our insightful young friend is saying is that we welcome the inevitable seasons of nature, but we're upset by the seasons of our economy."

     

    Tattoo this on Yellen's head.
    5 Mar 2014, 04:08 PM Reply Like
  • eudemonic
    , contributor
    Comments (31) | Send Message
     
    How the USA survived the first winter after July 4,1776 is a miracle. I'm so glad the weather cooperated.
    5 Mar 2014, 03:54 PM Reply Like
  • Bioalchemy
    , contributor
    Comments (178) | Send Message
     
    Fed is a joke, again
    5 Mar 2014, 07:43 PM Reply Like
  • mitrado
    , contributor
    Comments (2033) | Send Message
     
    A) Give money to low income people and it will stay in the local economy.
    B) Give money to rich people and it will go to the Cayman Islands.

     

    What the world's governments are doing is option B. How can they expect this plan to improve the economy!?
    6 Mar 2014, 03:51 AM Reply Like
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