Economy shows slight improvement in latest Fed survey

The regional economy shows some glimmers of recovery, according to the Federal Reserve's latest Beige Book survey.

Economic activity in the Fed's St. Louis district, which includes western and southern Missouri as well as parts of six other states, remained weak but shows some improvement, particularly in the services industry, according to the survey. The survey covered October and early November.

The service sector is the brightest spot in the region, with businesses in the support services sector announcing plans for several new facilities and new hires in the region.

Manufacturing activity continues to slow in the region, but at a slower pace than in previous surveys. Rubber tire, packaging, food and beverage, auto manufacturing, furniture and plastic product makers increased production, while copper, appliance, lumber and heating companies cited weak demand as a driver for layoffs.

Consumer retail spending overall was down from a year earlier, with 65 percent of retailers showing flat or declined sales. However, 46 percent of retailers surveyed expect sales for the rest of the year to increase over 2008 levels.

Real estate and construction continued to struggle, with home sales and home construction declining in nearly all the major markets in the district. Commercial real estate rental rates and construction industries also continue to decline, with several companies reporting a sharp decline in the overall commercial construction market.

The Beige Book is released eight times a year and is based on surveys of business contacts and anecdotal business information from around the region.[[In-content Ad]]