Economic activity continued to expand nationwide in late July and August, the Federal Reserve Board said in its latest Beige Book report.

The Beige Book report was compiled by the Federal Reserve Bank of San Francisco, based on information collected before September 1st.

In the Fed's Sixth District, economic activity "remained positive" during July. In August, there was "some unevenness," the report said.

Retail sales were robust in July and mixed in August.

Housing activity continued at high levels, although there were "some signs of deceleration" in August.

Reports on tourism and transportation services were mostly positive, the Fed said, and manufacturers and transportation service providers both reported that demand had improved.

"Business contacts noted continued caution overall, but indicated that the prospects for hiring were improving," the Fed said. Employment services reported an increase in the number of permanent placements.

Nationwide, consumer spending was mixed across districts and across products in late July and August. San Francisco, Kansas City, New York, and in some areas of the Minneapolis and Boston were among those that reported strong, "solid" business conditions in the travel and tourism sector.

Demand for commercial and industrial loans increased in the New York, Richmond, Atlanta, St. Louis, and San Francisco Districts.

St. Louis and San Francisco noted improvement in demand for health-care services; San Francisco also reported improved demand for the services of advertising and media firms.

For an entire summary, go to:

FRB: Beige Book--Summary--September 8, 2004

Here's to healthy, adventuresome, soulful and strong supply and demand living!

~ Jennifer King