The Beige Book is not something most of us follow but our “local branch” of the Federal Reserve is known to be one of the more conservative (and accurate) in their market analyses and projections. This information, looked at in the right light, is not only helpful but also a wee bit encouraging.
The four key areas of our economy and their updates from the Beige Book:
- Manufacturing
- Retail Sales
- Financial services
- Construction and Real Estate
Retail activity increased moderately over the reporting period. Looking at March and April and smoothing out fluctuations due to the Easter holiday, demand has increased in the low- to mid-single digits over the prior year. Texas continues to perform above the national average, according to one large retailer, and the outlook for 2011 remains positive.
Financial firms reported steady overall loan demand. Real estate activity has shown recent improvement as well. Optimism persists for pockets of homebuilding and some lending across the state. Outlooks are generally positive in light of better outstanding loan quality and continued slow improvement in lending conditions.
Housing contacts said sales remain at low levels, but optimism has increased along with better traffic. Sales are expected to improve in the second half of 2011. Private nonresidential demand has improved. Leasing activity is growing and there are reports that industrial and office construction are increasing from previously very low levels. Sales of commercial buildings are also picking up across the District.
As was said from the panel in a recent Real Estate Forum, “It’s good to be in Texas.”
The Sykes Team
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