Construction and Real Estate References to declining construction activity and weakening real estate markets are common. Increases in homebuilding in the Dallas and Minneapolis markets are exceptions, but Minneapolis also notes marked declines in overall construction contract values in the Minneapolis-St. While Kansas City mentions recent upturns in housing starts, homebuilding there remains below a year earlier. According to the San Francisco report, construction activity is slowing in many parts of the west. Moreover, Boston, Chicago, St. Louis and New York all refer to weakening residential construction or weak housing sales and Cleveland notes high office and retail vacancy rates.
Several reports say that respondents expect continued construction weakness in the near future.
Agriculture Reports on agricultural production are generally positive, in part, because the soil moisture problems mentioned in the last beige book have ameliorated. In the Richmond District, rainfall in August was mostly above normal and soil moisture levels are now said to be adequate, but the dry weather in June has lowered corn yields. The Dallas District reports that rainfall has improved soil conditions there. Crop conditions are also good in the Chicago, Kansas City and Minneapolis districts. Inadequate soil moisture continues to impede crop development in portions of the St. Louis district.