Fed: New England Economy Continues To Improve
Posted by | Posted in Business Days | Posted on 11-01-2012
Much of New England’s economy showed modest improvement during the fourth quarter — but real estate remains in the tank, the Federal Reserve reported today in its latest “Beige Book” survey.
“Most contacts expect a continuation of current modest growth trends, notwithstanding uncertainties related to Europe and U.S. budget deliberations,” Fed researchers wrote in the Beige Book, which they compile quarterly by surveying businesses across the country.
The Fed said New England’s consulting, advertising and travel/tourism industries all had solid growth during the period, while retailers and manufacturers reported modest gains.
However, the region’s construction, commercial and residential real estate sectors remained generally weak.
“Despite positive absorption in 2011, one contact says Boston’s downtown office vacancy rate remains undesirably high at about 16 percent,” Fed researchers wrote.
The central bank added that New England’s housing market remains stuck in the doldrums.
“Contacts expect sales activity to remain slow in the coming months, but believe prices will stabilize in the region,” researchers wrote.
“(Businesses) do not expect further weakening in the (housing) market, but also do not anticipate significant recovery in the near term,” the Fed said.
On the plus side, the central bank said one expert it surveyed said the Greater Boston housing market “showed possible signs of improvement due to strengthening employment conditions in the city.”
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