Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-Two major categories of industrial tenants showed mixed results during the six weeks ending in mid-October, according to the most recent Beige Book from the Federal Reserve. Activity in the transportation services sector declined in in most regions of the US, but manufacturing activity was stronger, says the report, which summarizes input from the 12 Federal Reserve districts.

But even in transportation, there were signs of economic recovery, especially in Chicago where trucking shipments increased, and Cleveland, where freight transport volume in general rose since the end of August. On the other hand, the Atlanta San Francisco and Dallas districts reported a decline in trucking activity, while Kansas City’s was flat, the report says.

According to the report, most districts reported a strengthening in manufacturing activity since the last report was issued at the beginning of September. New York, Richmond, Minneapolis and Kansas City all recorded a noticeable pickup in production, while Philadelphia, Cleveland, Chicago and San Francisco showed slight-to-moderate increases. Other districts, however, experienced little or no overall increase, though some reported improvements in specific industries. Boston, for example, evidenced stabilization or modest improvement in a few sectors but minimal growth as a whole. Similarly, Dallas reported flat demand overall but pick-ups in the high-tech, food and petrochemical sectors. St. Louis continued to decline, while Atlanta noted moderate declines in orders and production.

Significantly, Boston, Richmond and Chicago reported that year-over-year declines in new orders of housing-related products had abated, while Cleveland, Richmond and Chicago reported substantial increases in automobile and auto-parts production. The latter were attributed primarily to restocking dealers’ and manufacturers’ inventories following the Cash-for-Clunkers program. Stronger demand from the auto sector in turn led to an increase in steel production in Cleveland and Chicago.

Comments on the near-term outlook varied across Districts, with Boston, Philadelphia, Cleveland and Kansas City expecting only slight gains over the next six months, while New York anticipates hiring more workers and spending more on capital improvements. In Dallas, planned projects and routine maintenance are likely to be deferred to conserve capital.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


GlobeSt. INDUSTRIAL 2022Event

This conference brings together the industry's most influential & knowledgeable industrial real estate executives

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.