Modest growth in lending was reported across Federal Reserve districts in late November and December, tracking what most districts called “moderate” or “modest” economic growth, according to the latest Beige Book released Wednesday by the Federal Reserve.
According to the Fed, in addition to the modest loan growth, the agency’s district banks also reported little change in asset quality overall. However, the Fed said, lenders and community organizations voiced concerns about delinquencies among small businesses and lower-income households.
Of the Fed’s 12 districts, only one – Dallas – reported that both bank loan volume and demand expanded.
Meanwhile, for the economy overall, the Beige Book noted that for the last two months of 2024:
- Residential real estate activity was unchanged on balance, as high mortgage rates continued to hold back demand.
- Commercial real estate sales edged up.
- Consumer spending moved up moderately, with most districts reporting strong holiday sales that exceeded expectations.
- Vehicle sales grew modestly.
- Construction activity decreased overall, with several districts indicating that high costs for materials and financing were weighing on growth.
- Manufacturing decreased slightly on net, and some districts said manufacturers were stockpiling inventories in anticipation of higher tariffs.
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