This article first appeared in the St. Louis Beacon, Jan. 12, 2011 - The Federal Reserve reported that economic activity has increased modestly in the Eighth District, which includes St. Louis, according to the Fed's Beige Book released Wednesday.
The good news: Manufacturing activity continued to increase, and the services sector improved slightly since the Fed's last report on Dec. 1. The bad news: Home sales continued to decline across the district, and commercial real estate activity remained sluggish.
The Beige Book, which is released eight times a year, is based on anecdotal information compiled from community and business leaders who offer their perspectives to the Fed confidentially. The Eighth District includes St. Louis and eastern Missouri, southern Illinois, Arkansas and parts of Mississippi, Tennessee, Kentucky and Indiana.
According to the report:
- Year-to-date home sales through November 2010 were down 14 percent in St. Louis, compared to the same period in 2009. Sales were down 17 percent in Memphis, and 1 percent in Louisville.
- On the other hand, residential construction continued to improve throughout the district. Single-family housing permits were up by 6 percent in St. Louis, through November.
- Early reports from district retailers indicated an increase in holiday sales over a year ago.
- Overall lending activity at small and mid-sized banks in the district declined in the three-month period from mid-September to mid-December. Total loans at a sample of small and mid-sized banks decreased 2.5 percent; real estate lending -- which accounts for nearly three-fourths of all loans -- decreased by 2.4 percent.
