National Economy Shows Growth, Fed Reports
Despite the federal government shutdown earlier this month, a report released by the Federal Reserve’s Beige Book shows sentiment is “cautiously optimistic” about the nation’s economy.
The Federal Reserve reported on economic conditions of each of its 12 districts and found “modest to moderate” economic expansion across then nation. The period reported from August 27 through October 7 and showed growth in most markets.
Philadelphia District was the one exception to the overall market growth. Not only did the district’s business activity decrease recently, but the district also reported declining sales, traffic and new contracts. Existing-home sales also slowed down to a modest pace of growth.
Real estate activity has been booming. Both commercial and residential real estate “largely continued to improve,” even though activity was mixed across districts. Rising rates have been of concern in some districts, but necessarily in all. The Dallas and Boston districts reported rising rates, which served as motivation for potential buyers to buy quickly before rates increased further.
Consumer spending is up “modestly,” as well as business spending and manufacturing showing growth. Even though the government shutdown was a huge potential threat to the tourism sector, hotels did not report cancellations.
Let’s hope that the remaining uncertainty clears as the federal government reopens.