The Federal Reserve’s February Beige Book, a commentary on current economic conditions, said that overall activity in the category rose slightly between mid-January and mid-February. Six of the 12 districts saw no change, four reported modest growth, and two had slight contractions.

In the overall summary of economic activity, the only mention of commercial real estate is a modest decline in construction activity. But some other trends could have indirect implications for the entire industry. Consumer spending, which is the largest driver of GDP, was “lower on balance.” There’s increased price sensitivity for discretionary items. Manufacturing saw slight to modest increases.

As for reported CRE activity in the districts, Boston was flat, though some saw upside potential for both residential and commercial volume. There was continued solid leasing in multifamily and rents increased modestly. Industrial rents were stable at high levels. The office sector continued to struggle. The Trump administration’s proposed cuts to NIH funding threatened the life sciences sector. Larger banks started lending on select commercial properties, creating small reductions in borrowing rates. On balance, the outlook was slightly pessimistic.