Photo: westvillagebob / Flickr
The real star of today’s Federal Reserve Beige Book report was the shale oil and gas activity reported by the Cleveland Fed (h/t Matt Phillips). Shale development is cited seven times as an unimpeachable strong growth sector of the U.S. economy.
This only adds to evidence that the boom is real:
Third District (Eastern Pennsylvania, New Jersey, Delaware)
“Contacts have attributed some growth to rising demand from sectors related to autos, housing, Marcellus shale, and other energy production.”
“In areas with Marcellus shale gas, several banks have described customers paying down loans with royalty money and avoiding further debt by paying cash. Beyond the gas fields, energy projects are attracting substantial investment interest and loan opportunities for larger banks.”
Fourth District (Ohio, Western Pa., Eastern Ky.) activity
“Shale gas activity expanded at a robust pace.”
“Vacancies were found primarily in the shale gas and motor vehicle industries and in professional business services.”
“[Auto] dealers in the eastern part of the District are apprehensive about losing technicians to the shale gas industry, which may put upward pressure on wages.”
“Conventional oil and natural gas production was steady during the past couple of months, with little change expected during the next quarter. In contrast, shale gas activity expanded at a robust pace…
“Shale gas producers expanded payrolls, while employment at conventional oil and gas firms was flat. ”
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