Federal Reserve's Beige Book says economy slowing

NEW YORK -- July 28, 2006 -- Overall economic growth is slowing, according to the Federal Reserve’s Survey of Current Economic Conditions, otherwise known as the Beige Book, which was released Wednesday.

The Beige Book noted a general slowdown in residential real estate with a couple of notable exceptions. These are the St. Louis and Dallas Districts. The book said:

"In the St. Louis District, the pace of home sales was largely unchanged or up slightly compared with a year earlier, although residential construction slowed there.”

The book also note: "Housing markets have remained resilient in the Dallas District, where despite signs of cooling, home demand remains strong and residential building activity has been robust."

Along with the dip in home demand, the Beige Book noted there has been a corresponding rise in demand for rental units. "New York reported that the market for apartment rentals has been tightening in Manhattan, and according to Atlanta slower condominium sales in Florida have prompted owners to convert some units to rental property."

The Beige Book saw increased demand for commercial real estate. "Demand for commercial space was strong in general, and the market tightened further in most Districts."

But the Beige Book noted some pockets of slowing activity, including Chicago and Kansas City. And there was mention of reports that high construction costs are delaying or causing the cancellation of some building projects in the Cleveland, Chicago and San Francisco Districts.