I thought I’d compile some of the economic news out there and how it affects us investors.   The Federal Reserve Board of Governors released a survey of the state of the economy in the 12 Federal Reserve districts and found that in all but one, St. Louis, the recession is moderating and the economy is beginning to grow again. Growth for July through September is expected in the 3 to 4 percent range, spurred on in part by the Cash for Clunkers program (though most automakers are reporting drops of about 25% as the post Cash for Clunkers hangover sets in).   The Fed reports that business spending has been growing also with “modest” improvements developing in most regions.

 This is also good news for the housing market where the Fed is “cautiously positive,” despite continuing weaknesses.  There was reported an increase in home sales in the Federal Reserve regions of Chicago, Richmond, Boston and San Francisco. Most reported that the first time homebuyer tax credit is responsible for this surge in low end sales. The largest buyer demand is at the low end of the housing market, although Philadelphia reported an up tick in sales in the high end market as well.

 The growing jobless rate is preventing any real housing recovery from taking hold.

 Prices are still going down in most of the Fed reporting markets, although Dallas and New York noted that prices for homes are beginning to “firm.”

 Commercial real estate is another story.  All Fed regions reported that demand continues weak in the commercial market and continues to fall in all regions.

 So be on the lookout for good commercial deals coming up in the next year or so as that market bottoms out.  There are opportunities everywhere, just keep your eyes open!