Hawaii Stabilization Signs in Federal Reserve Report

Signs of economic stability were reported in the San Francisco Federal Reserve Bank's Beige Book for certain areas in Hawaii in June and July. Economic activity was relatively weak in retail for most areas and demand for most services was weak as well. Production of manufactured products was low in general but high for manufacturers of information-technology products.

According to the report, oil prices fell but the price of other commodities was stable. Prices also fell for professional services including transportation and hotel rooms.

Discount retailers and many grocery businesses are doing well as the economic slowdown has limited many buyers to the essentials, such as food, where they can be purchased most cheaply. Used car sales were high and new car sales were low.

According to the Fed, travel activity continued to fall in June and the first half of July, especially for business and luxury. Commercial real estate demand continued its decline but some districts' housing markets showed minor signs of improvement. Loan activity continued to fall, as did demand for commercial and industrial loans.

There is still a great deal of uncertainty in the state of the economy now and where it is headed, but even the most minor imporvements make many hopeful. As always, it's a good idea to be circumspect in your interpretation of the news and continue to plan for the worst and hope for the best.

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