beige

The economic slowdown has begun, according to the Federal Reserve's latest report on conditions across the country released Wednesday. The economy continued to grow, but at a reduced pace, according to the report, known informally as the Beige Book. The glut of available homes for sale is keeping downward pressure on house prices and construction activity. No turnaround is on the horizon until well into 2008, contacts said. Two of the few bright spots were manufacturing and tourism which benefit from the weaker dollar. The report found soft retail sales, pessimism about the holiday season and concern that goods are piling up on shelves. The financial market turmoil is impacting the market for credit. Business loans are down and standards for consumer loans are up. Not wanting to dwell on the weak bank sector, the report separated out "nonfinancial services" as an area of strength. Demand for legal services increased.