A report published by the Federal Reserve is confirming what we’ve been telling you for the past month or so: the US economy is in fact making a slow recovery (emphasis on recovery.)
The Summary of Commentary on Current Economic Conditions (known as the “Beige Book”) was released Wednesday. Each Federal Reserve bank gathers anecdotal information on current economic conditions in its district through reports from bank and branch directors and interviews with key business contacts, economists, market experts, and other sources. The report is published eight times a year and is used as a guide in crafting monetary policy.
The reports show that the economy is growing, though slowly. Nine of the Fed’s 12 regional banks reported that economic activity had improved in February. Two districts, St. Louis and Atlanta, reported a more mixed performance and one district, Richmond, was snowed under.
While consumers are spending again, retailers are keeping their inventories low and businesses have had to keep prices down. Manufacturing is up, but it’s unclear if it will remain so.
The economy continues to feel the pressure of the ongoing credit crunch. Fewer businesses are taking out loans and banks remain reluctant to lend.
Of course, everyone is concerned about the job market, which has yet to show any steady sign of improvement. While the pace of layoffs has slowed, hiring remains “soft,” the survey said.
The Fed’s next meeting is scheduled for March 16, during which analysts say the hot topic will be whether or not to raise the short-term interest rate.
Photo by AgnosticPreachersKid via Wikimedia Commons.
