Fed: Economy Improving, Commercial Still Weak

Fed: Economy Improving, Commercial Still Weak
The U.S. economy has “improved modestly” since early October, the Federal Reserve said Wednesday in releasing its monthly “beige book” survey of regional economic conditions.

The Fed said residential real estate sales increased everywhere but the Northeast. Also, fewer homes overall were being built.

The report also said commercial real estate was worse than the residential market, with conditions reported to have weakened in virtually all districts, with “rising vacancy rates, downward pressure on rents, and little, if any, new development."

Overall, the Fed reported that the labor market remained weak in most areas, but it noted improvement in some areas and an uptick in retail sales.

Source: The Wall Street Journal, Sudeep Reddy (12/03/2009)