Beige Book Shows Modest Growth But Weak Real Estate Conditions

The Federal Reserve’s popular Beige Book report released this week suggests economic activity across most of the nation is showing signs of “modest” growth, but it’s not enough to improve the country’s anemic jobs picture with the unemployment rate holding at or above 9.5 percent for more than a year.

Beige Book findings are based on anecdotal information collected across the country from businesses and contacts outside the Federal Reserve. Data included in the latest report covers the September to early October time period.

The most recent results show progress, albeit uneven, compared to the Fed’s description of “widespread deceleration” in the September Beige Book.

Housing markets remained weak with most districts reporting sales below year-ago levels. The central bank says input it received on home prices, however, suggests stability. Conditions in the commercial real estate sector were soft, while overall lending activity was described as stable in most districts.

Overall home sales were characterized as “sluggish” or “declining” throughout most regional districts. There were scattered reports of some improvement in sales in a few districts, however.