Federal Reserve Reports Slow Growth

 

Federal Reserve reported that most districts experienced slowing residential real estate activity ?EUR??,,????'?????< Courtesy of Swift Economics

As reported in the Federal Reserve’s September Beige Book, which summarizes the results of surveys of economic conditions in each Federal Reserve district, economic growth slowed from mid-July through August when compared to earlier in 2010.

The survey found that consumer spending increased, but that consumers generally remained cautious. Although many sectors — including manufacturing, professional services, agriculture and finance — experienced growth, the rate was slower than earlier in the year.

The report reinforces NAHB’s view that regional markets are responding at different paces, though all the regions slowed after April.

While residential construction activity declined in most areas in response to weak demand, Cleveland, St. Louis and Minneapolis were the exceptions. Surveys in these districts indicated residential construction activity began to improve in late July and August.

Inventories of available homes rose across the country, although the availability of new homes in Atlanta was held down by the slow pace of new-home construction.

Price movements were mixed. Most districts reported stable or declining prices. A few exceptions —notably Boston, Minneapolis and San Francisco — reported that prices rose in some areas compared with the previous reporting period or last year.

– Courtesy of NAHB