Fed Suggests It's Not All Doom and Gloom

Today the Federal Reserve released its June "Beige Book," a summary of economic indicators from the 12 Federal Reserve District Banks which includes cities around the nation like New York, Chicago, Atlanta and San Francisco. The report looks at factors like consumer spending, the labor market and real estate construction.

So what was the Fed's take-away message? Predictably, the economy isn't all roses and sunshine again, but "five of the Districts noted that the downward trend is showing signs of moderating" and though they don't expect increased economic activity through this year, "several Districts said that their expectations have improved."

Overall, consumer spending remained soft. People are pulling back from the luxuries and focusing on necessities. But a few cities — New York, Minneapolis and Dallas — saw a small rise in sales. Six other cities saw results that were flat or mixed.

Modest gains were seen in residential real estate as well. The report noted that the market is still "weak," but because of seasonal factors like "low interest rates, declining house prices, and tax credits for first-time buyers," real estate agents in eight of the cities including Cleveland, Dallas and San Francisco reported increased sales.

The labor market continues to struggle with "wages generally remaining flat or falling." But there are some bright spots: Retail employment is stabilizing. Job losses in the manufacturing sector are moderating. And some staffing firms are reporting "modest signs of recovery."

All of this meaning? At least it's not getting worse. And more importantly, the stabilization in some sectors has caused an improved outlook, which, for those who live by the "glass half full" ethos, can make all the difference.