Economy shows improvement in St. Louis Fed district

Economic conditions improved in most areas of the Federal Reserve System's Eighth District, which includes Springfield.

In the Fed's latest Beige Book report, total deposits increased at a sampling of small- and mid-sized banks from the region.

Residential real estate also showed signs of recovery in parts of the district. November 2009 year-to-date home sales were up 1 percent compared to the year before in St. Louis and held steady in Louisville. Residential construction remained weak, however, with year-to-date housing permit numbers down in most metro areas.

Commercial real estate also remained weak, with contacts in multiple cities saying the market has "stalled" and that "the focus is on retaining tenants rather than recruiting new ones."

Lending and manufacturing activity continued to decline. The report noted a 2.1 percent decrease in total loans outstanding from the area banks sampled, and several manufacturers reported plans to close plants and lay off employees. Those announcements were tempered somewhat by announcements of production increases in the apparel, furniture and appliance manufacturing sectors.

The Beige Book is released eight times a year and based on surveys of business contacts and anecdotal business information from around the region, which covers parts of Missouri, Arkansas, Mississippi, Tennessee, Kentucky, Indiana and Illinois.