03/29/2024

Beige Book, September 2, 2015

Twelfth District–San Francisco

Economic activity in the District grew at a moderate pace during the reporting period of July through mid-August. Overall price inflation remained limited, but upward wage pressures increased further. Retail sales grew moderately, while demand for business and consumer services picked up further. Manufacturing output grew modestly. Agricultural activity ticked up. Real estate market activity expanded at a moderate pace. Lending trended up, and credit conditions improved somewhat.

Prices and Wages
Overall price inflation was little changed from the limited pace noted in the prior reporting period. Prices for health-care services and pharmaceuticals rose further. Prices for agricultural products generally increased, with reduced acreage and yields creating modest supply shortages for some products. Contacts in regions with strong residential construction growth noted moderate price increases for construction materials. By contrast, retail grocery prices were largely flat, held down in part by added supply from e-commerce retailers. Energy price declines and dollar appreciation held down prices charged by utilities and prices of assorted raw material imports. Contacts in the technology industry reported a drop in advertising costs as firms shifted campaign platforms from traditional desktop computers to cheaper mobile devices.

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