Federal Reserve Highlights Modest Economic Growth in Latest Edition of its Beige Book
On January 11, the Federal Reserve published the latest iteration of its Beige Book, which compiles economic data from all 12 Federal Reserve Districts. The report notes that that national economic activity expanded at a modest to moderate pace during late November through the end of December and that compared with prior reports, the data indicates ongoing improvement in economic conditions. Specifically, consumer spending picked up in most districts, reflecting significant gains in holiday retail sales compared with last year's season, while activity in the travel and tourism sector also expanded in most areas. Manufacturing activity continued to expand, although the pace of growth has slowed. Agricultural producers and extractors of natural resources reported robust conditions. However, activity stayed sluggish in residential real estate markets, and conditions in commercial real estate markets remained somewhat soft. Inflation pressures remained quite limited for most categories.

Link: Beige Book

Retail Spending Rises Slightly in December
On January 12, the Department of Commerce reported that December retail sales were $400.6 billion, a rise of 0.1 percent compared to November, driven primarily by auto purchases. However, if you exclude motor vehicle sales, sales dropped by 0.2 percent. Additionally, several other categories of sales reported declines as sales at electronics and appliance stores declined 3.9 percent, while general merchandise sales fell by 0.8 percent. Online sales also fell, declining by 0.4 percent. However, clothing sales did rise by 0.7 percent. Although December sales were below expectations, the Commerce Department also revised its analysis of November sales from a 0.2 percent rise to a 0.4 percent increase. Additionally, the December sales level was 6.5 percent above the sales level in December 2010. Finally, another positive aspect of this report was that total retail sales for 2011 were 7.7 percent higher than 2010.

Link: News Release

Weekly Jobless Claims Rise
On January 12, the Department of Labor reported that for the week ending January 7, initial claims were 399,000, an increase of 24,000 from the previous week. Additionally, the 4-week moving average was 381,750, an increase of 7,750 from the previous week's revised average of 374,000. While analysts noted that weekly claims figures can be volatile, reports also noted that this report reinforces that while the economy is growing, the pace and speed of that growth is likely to be slow over the next six months.

Link: News Release

Small Business Confidence Rises for Fourth Consecutive Month
On January 10, the National Federation of Independent Business (NFIB) reported that its Small-Business Optimism Index rose 1.8 points to 93.8 last month from 92.0 in November. This was the fourth consecutive monthly increase. However, NFIB also noted that even in light of the past four monthly increases, the index remains at a level indicating weak growth. 

Link: Small Business Optimum Index