WisBusiness: Beige Book shows slight improvements going into third quarter

By Tracy Will

For WisBusiness.com

In it’s newest “Beige Book,” the Federal Reserve Bank suggests the pace of decline has moderated and economic activity has begun to stabilize.

The Chicago Fed, covering southern Wisconsin, reported some improving trends while the Minneapolis Fed, covering northern Wisconsin, reported continued regional decline. In northwestern Wisconsin, tourism was equal to or greater than last summer, but overall sales activity was slow.

The Beige Book is a report based on anecdotal information on current economic conditions.

Wisconsin’s manufacturing sector was mixed, a consequence of automotive manufacturers lay-offs, while heavy equipment manufacturers such as Oshkosh Truck were keeping orders moving. Other heavy equipment manufacturers reported they were producing product at low levels. The report noted that many car dealers that lost their franchises were converting to used car lots or service centers. One northern Wisconsin dealership reported sales increases in June and early July.

The health sector continued its moderate activity, while farmers in Wisconsin are dipping into their reserves to deal with drought conditions in northern WIsconsin and low crop prices across the board.

A review of bankruptcy filing in eastern and western districts of Wisconsin showed filings were ahead of last year’s pace but well below levels set when federal bankruptcy laws changed in 2005.