Beige Book shows moderate economic growth

Positive reports came from the manufacturing and service sectors as well as commercial real estate in the district, which covers Arkansas, most of Missouri and parts of Illinois, Indiana, Kentucky, Tennessee and Mississippi, while home sales and residential construction remained weak.

Several manufacturers reported plans to open plants and expand operations in the near future. Specifically, motor-vehicle parts companies reported major hiring, while pharmaceutical and medicine, transportation equipment, food and fabricated metal manufacturers also reported plans to expand.

The largest weakness in the district, as in past reports, was residential real estate and construction. Year-to-date home sales through August were down 3 percent in Little Rock, Ark., 7.4 percent in the St. Louis area and 13 percent in Memphis, Tenn. Year-to-date single-family housing permits fell in all major metropolitan areas. Most communities, however, reported positive commercial real estate market conditions.

Total loans at small and mid-sized banks in the district increased 2.1 percent from mid-June through mid-September, according to the report, and real estate lending increased 2.6 percent.

The Federal Reserve publishes the Beige Book eight times a year and uses it to help determine monetary policies.