Economy continues to grow, according to Fed

The last few versions of the beige book have all mirrored the cautious optimism contained in the newest edition.

However, Wednesday’s release includes some positive indications about the housing market, which has repeatedly been identified by the Fed as a drag on the economic recovery.

Officials reported that commercial real estate “showed signs of gaining traction,” but that residential housing was more mixed, as prices continued to fall in some areas. The Fed said that market “remained at low levels” nationwide, but some areas, such as New York and Atlanta, reported signs of slight improvement.

The Fed has similarly been concerned about the nation’s employment situation. Federal Reserve Chairman Ben Bernanke has warned the current recovery is barely sufficient to keep up with new entries into the workforce, and that he expects it to take several years for unemployment to return to typical levels.

In the new beige book, Fed officials said labor markets nationwide continued to “strengthen modestly.” They noted increased demand for workers and “noticeable improvements” in several areas of the country, particularly in the medical- and technology-related fields.

However, some districts, like St. Louis and Minneapolis, continued to report layoffs.

Retail sales were particularly strong across all districts, which is a particularly optimistic indication, considering five districts said severe snowstorms hindered some of that activity.

Similarly, sales of big-ticket items such as automobiles were up in most districts, and several districts reported gains in their tourism industries, driven by a “strong increase” in international visitors.