Fannie Mae continues to expect sluggish job creation and modest consumer spending to dictate economic growth through this year and next.

In its October economic outlook, the government-sponsored entity's economics and mortgage market analysis group said the economic outlook remains clouded. The GSE sees growth of less than 2% as 2010 closes, with modest gains in the first half of next year and a "strengthening" in the second half of next year.

Fannie Mae continues to forecast 2.2% growth for all of 2010 with 2.5% growth for 2011. Those are the same estimates the GSE provided last month, when it said a "housing bottom proves elusive.

"The labor market has yet to make significant progress, which is the primary reason for our continued weak growth forecast," Fannie Mae chief economist Doug Duncan said. "With economic growth slowing, job creation also has been tepid, keeping the unemployment rate high.  Housing sales will likely be soft until the labor market strengthens.

Write to Jason Philyaw.

The Century 21 franchisees are taking Century 21 Real Estate Corp. and its parent company Realogy Corp. (formerly known as Cendant) to trial after the New Jersey Appellate Division choose not to hear the case appeal last week.

In 2002, the franchisees filed a class-action lawsuit against Century 21 Real Estate Corp. and its parent company for alleged noncompliance with contract agreements. In an August ruling, New Jersey Superior Court Judge Robert Brennan approved the motion to go forward as a class-action, saying the franchisees had an interest in ensuring that Cendant abides by the franchise agreement.

Cendant sequentially filed a motion to appeal that was denied last week.

Century 21 was purchased by Cendant in 1995. The complaints referenced noncompliance from the time Cendant acquired Century 21 to when the case was filed.

Century 21 franchisees contributed annually to a National Advertising Fund that it alleges was supposed to be used for national marketing of the franchisees. The fund, which derived $40 million annually, was instead used for Cendant's own benefit it is claimed — and also supported Century 21 competitors Coldwell Banker and ERA. Coldwell and ERA are wholly owned subsidiaries of Cendant.

"As a result of Cendant's actions, Century 21 franchisees have suffered damages that may total in the hundreds of millions of dollars," said Robert Schachter, plaintiff attorney from Zwerling, Schachter & Zwerling.

Spokesman for Century 21 corporate, Matt Gentile, denies the allegations made against the corporation said in an official statement. "We categorically reject the claims made by plaintiffs' attorneys and will continue to aggressively defend this case."

Under the ruling last week, the case will continue as a class-action lawsuit, but a trial date has not been set.

Write to Christine Ricciardi.

The economy continued growing between September and early October but at a modest pace, according to the Federal Reserve.

Still, the Beige Book, which gathers anecdotal evidence of economic conditions in the dozen Fed districts nationwide, showed lingering weakness in the housing market with lower home sales in most districts.

"There were scattered reports of some improvement in sales in a few districts, however," the central bank said. "Philadelphia noted an increase in sales of existing homes, and Richmond, Kansas City, and Dallas reported upticks in sales of higher-priced homes. Sales reports were mixed in the St. Louis and Minneapolis Districts, with increases in some metro areas and declines in others."

In early September, the Fed said the economy was growing at a slower rate than prior periods. The current report comes as the Federal Open Market Committee prepares to convene in two weeks. Many expect the Fed to announce a decision to increase the level of purchases of Treasury securities, know as quantitative easing. Although some question the tactic.

The Fed said construction of single-family homes was "at very low levels" during the period with slight improvements in the Midwest. Homebuilders in Texas told the Fed they've "pulled back on starts considerably after the run-up earlier in the year.

Sales of commercial properties were low overall, as well. Although Chicago and Dallas reported strong demand for sales of distressed commercial properties.

"Given lackluster demand for commercial space, nonresidential construction activity was limited to mostly public projects," according to report, which is published eight times a year.

The Beige Book showed continued expansion in manufacturing activity during the period with production and new orders up in most districts.

The Fed said overall consumer spending was flat to up slightly, as "purchases were mostly limited to necessities and non-discretionary items."

The central bank's data also showed car sales during the period were steady to up and activity in the travel and tourism sector rose, as well.

This year's final Beige Book will be available Dec. 1.

Write to Jason Philyaw.