The latest Federal Reserve Beige Book forecasts continued economic growth for Ohio, western Pennsylvania and eastern Tennessee. Columbus Business First recently summarized the Fed’s findings, and we’re sharing the highlights here, along with our own insights!
In case you’re new to the Beige Book, it’s an economic report that is published every eight weeks for each of the twelve Federal Reserve districts. The entire state of Ohio, along with western Pennsylvania and eastern Tennessee, falls under the boundaries of the Federal Reserve Bank of Cleveland, also known as District 4.
In producing the Beige Book, our local Federal Reserve institution acquires input from business leaders, economists and other banks. The Beige Book is a snapshot of the District’s financial health, taking employment, sales trends, prices and real estate activity into consideration.
Because of the wide geographical area included in our District, and the variety of economic conditions that exist from one locality to another, the Beige Book is not a crystal ball. However, it provides a broad sense of where our regional economy is headed. For example:
Our labor market is tightening amid economic expansion, with job openings in finance, healthcare and technology. Wages are growing for highly-skilled and well-educated employees. More employees are also needed in the skilled trades, including construction workers and contractors.
Manufacturing remains a large element of our regional economy. Car sales are up 3% compared to a year ago, and manufacturing job growth is in positive territory. Economists note that overall production in this sector is slower than a year ago, which tempers the overall forecast.
Real estate is a bright spot for Ohio and our District as a whole. The Beige Book notes that residential market activity reflects higher home prices and higher transaction volumes than the same period a year ago. Commercial real estate construction is also on the rise, with new development in progress for educational services, health care and e-commerce distribution facilities.
Brick-and-mortar consumer retail is a struggling sector, which a story is playing out around the country. Demand is low for shopping center and mall space, while sales of apparel and electronics have softened. The fast-changing landscape of consumer tastes and shopping preferences have traditional retailers on the ropes.
One should keep in mind that Central Ohio’s economy tends to be stronger than the rest of the state, and stronger than the District 4 areas of adjoining states. Yet the larger economic trends are worth understanding when you are relocating to Columbus or moving across town!
As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
