WASHINGTON–Demand for commercial loans declined slightly in the period leading up to Nov. 17 as part of a broader slowdown in the overall economy, according to newest Beige Book data released by the Federal Reserve.
In particular, the decline in business lending was most apparent in real estate lending, according to the Fed, which also said the data found the office segment was weak while multifamily loans also decreased.
"The Federal Reserve’s latest Beige Book documents a downshifting in growth, with consumption and inflation slowing and the labor market coming into better balance,” said NAFCU VP-Research and Chief Economist Curt Long. “These conditions should allow for a rate cut in the first half of 2024."
Fairly Healthy
Overall, the Fed reported, consumer credit remained “fairly healthy,” although some of the Fed’s regional banks reported they have been seeing a “slight uptick in consumer delinquencies,” while some of the district banks reported a “slight decrease in residential sales and higher inventories of available homes,” according to the report.
CUToday.info had similar reporting this week on the housing market here and here.
Some Positives
There were some positives, with four of the district Fed banks saying they have seen modest growth, while two reported conditions were flat to slightly down. Six of the banks said their districts have seen slight declines in economic activity.