WASHINGTON – Some Federal Reserve districts reported “widespread signs of a deceleration compared with preceding periods” that has tempered moderate economic growth, the Federal Reserve reported Wednesday in its Beige Book of economic activity.
Five districts reported modest economic growth and two districts reported “positive developments.” The remaining five districts reported “mixed conditions or a deceleration in economic activity,” the report said.
Districts generally reported strong tourism spending, most notably New York, though Atlanta noted reduced tourism in areas affected by the Gulf Coast oil spill. Manufacturing continued to expand, though at a slower rate.
The report was prepared by the Fed Bank of San Francisco and includes information collected on or before August 30. In the July Beige Book, eight Federal Reserve Banks reported economic expansion.
Home sales have declined amid the “sustained lull” after the homebuyer tax credit expired, most districts reported. This led to a drop in construction activity and home prices and an increase in inventories, the report said.
Some districts reported concerns in the financial sector about new financial regulations stemming from the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The Chicago district reported that credit has been restrained based on the new financial regulations and the upcoming mid-term elections.
Dallas reported businesses have concerns about the financial reform legislation and “other political uncertainties,” the report said.
In Richmond, realtors said uncertainty and “confusion” about recent reforms “were key factors in holding back sales and construction.”
