by Calculated Risk on 10/15/2008 02:38:00 PM

Reports indicated that economic activity weakened in September across all twelve Federal Reserve Districts. Several Districts also noted that their contacts had become more pessimistic about the economic outlook.

From the Fed Beige Book on real estate and construction:

Residential real estate and construction activity weakened or remained low in all Districts. ... Several Districts noted continuing downward price pressures and an increasing supply of homes for sale due to rising foreclosures.

And for Commercial Real Estate (CRE):

Most Districts reported commercial real estate and construction activity had slowed, with New York, San Francisco and Dallas noting the sharpest declines. In contrast, Cleveland and St. Louis indicated steady activity. Increases in vacancy rates or sublease space were noted in Chicago, Boston, New York, Atlanta, and San Francisco. Several Districts reported project delays and cancellations due to tighter credit conditions and increased economic uncertainty.

An ugly report.