FI showroom red and grey logo
MenuMENU
SearchSEARCH

Economic Activity and Auto Sales Improving, Says Fed’s Beige Book

Fueled by more favorable pricing and credit terms, eight of the 12 federal districts in the Federal Reserve’s Beige Book reported improved vehicle sales in March.

by Staff
April 20, 2010
3 min to read


Fueled by more favorable pricing and credit terms, eight of the 12 federal districts in the Federal Reserve’s Beige Book reported improved vehicle sales in March.

The Beige Book, which is published eight times a year, gathers anecdotal information from 12 districts across the country on current economic conditions. This month’s edition showed that economic activity across all Federal Reserve districts, except St. Louis, picked up slightly last month.

Ad Loading...

Districts generally reported increases in vehicle and overall retail sales. Other economic indicators, such as tourism spending, manufacturing activity, hosing market activity, also showed slight gains. Exceptions were in the services and commercial real estate sectors. Activity in the banking and finance sector also remained mixed in a number of districts, as loan volumes and credit quality decreased.

Labor markets, another key indicator of economic activity, remained weak, although some hiring was evident – particularly for temporary staff.

Some districts indicated that consumer spending increased during the reporting period. New York and Cleveland saw sales strengthened, while sales rebounded in Richmond, Va., and Kansas City, Kan. Slight sales gains were reported in Philadelphia, while sales in San Francisco continued to improve.

Several districts described consumers as somewhat more confident, as businesses remain cautiously optimistic about future sales. Cleveland, Atlanta, Kansas City and Dallas noted that retailers expect sales to improve during the upcoming months.

Noting a pick up in auto sales were New York, Philadelphia, Atlanta, Chicago, St. Louis, Minneapolis, Dallas and San Francisco. Cleveland described sales as decent, while sales were steady in Kansas City and mixed in Richmond. Several districts noted that favorable pricing and credit terms is what helped lure buyers into showrooms, with dealers in Philadelphia indicating that they expect sales to increase during the next few months.

Ad Loading...

Manufacturing activity also increased since the Beige Book’s previous report on March 3, with all districts except St. Louis reporting increases in orders, shipments or production. Cleveland, Richmond, Atlanta and Chicago also reported increased auto or auto component productions — another sign of the auto industry finding its stride.

Bank lending activity was mixed by category in most districts. Atlanta, St. Louis and Kansas City saw weaker loan demand across all categories, while activity in San Francisco was flat at low levels. Dallas said that demand appears to be stabilizing, while New York said demand for consumer credit decreased. Demand, however, increased slightly in Philadelphia.

In Cleveland, most banks reported weak consumer loan demand, although a few of the Fed’s contacts saw a slight increase due to seasonal factors.

Credit standards remained generally unchanged across the nation, while credit quality was mixed. New York, Cleveland and Kansas City reported tighter lending standards for commercial mortgages. Fed contacts in Atlanta reported difficulty in getting credit. Dallas and San Francisco said standards continued to be tight.

New York saw increased delinquency rates for all categories except consumer loans, which were flat. Philadelphia and Richmond saw little change in credit quality, while Cleveland was mixed.

Ad Loading...

Dallas reported that credit quality was either stabilizing or improving. Chicago noted an improvement in consumer business loan quality, although credit quality for small firms continued to decline.

More Auto Finance

$5 bill poking out of blue jeans pocket
Auto Finance•by Hannah Mitchell•October 14, 2026

Interest Rates Further Squeeze Auto Consumers

Last month’s hike and a potential second increase this month add to a growing list of inflation woes that could continue to dent overall car sales.

Read More →
Staircase with no rails next to red-painted wall
Auto Finance•by John Tabar•October 8, 2026

Mind Your Process

Consistent steps taken in various aspects of the F&I office can make valuable differences over time, similar to an outline for a best-selling book.

Read More →
Scrabble letter tiles spelling fraud
Auto Finance•by Gil Van Over•September 30, 2026

Top Five Credit Application Fraud Flags

Compliance audits regularly reveal bad habits that can lead to fraud charges and should have been stamped out decades ago.

Read More →
Ad Loading...
Paper money, car key fob and calculator
Auto Finance•by Hannah Mitchell•September 14, 2026

More Auto Loans for the Taking in August

Riskier categories were on the uptick for the month as lenders loosened access in several areas while balancing out the exposure in another, Cox Automotive reported.

Read More →
A fan of $100 bills sitting on a white envelope
Auto Finance•by Hannah Mitchell•August 12, 2026

July Was Hot for Auto Borrowers

Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.

Read More →
stacks of coins, a calculator, paperwork, and a pair of glasses in the background, text Lender Experience Drives Dealer Decisions, F&I and Showroom
Auto Finance•by Lauren Lawrence•August 12, 2026

Dealer Lender Preferences Revealed

When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.

Read More →
Ad Loading...
man sitting at desk using a calculator
Auto Finance•by Lauren Lawrence•August 10, 2026

Auto Refi Savings Surge

Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.

Read More →
Tiny toy car in front of small stacks of coins
Auto Finance•by Hannah Mitchell•August 5, 2026

Subaru Enters Lending Business

The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.

Read More →
Man climbing ladder in front of mountain landscape.
Auto Finance•by Lauren Lawrence•August 3, 2026

Positive Equity Reaches Record High

Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.

Read More →
Ad Loading...
Photo of document next to calculator and inkpen
Auto Finance•July 20, 2026

Dealerships Are Paying the Price for Extended Car Loans

Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.

Read More →