US: US outlook 'cautiously positive': Beige Book
Thu Sep 10 04:32:32 EST 2009
Wed Sep 9 18:32:32 UTC 2009
WASHINGTON, Sept 9 AFP - The outlook for the US economy has become "cautiously positive" with conditions stabilising from the deep recession, the Federal Reserve said in its Beige Book report on Wednesday.
Some areas of the country are seeing firming economic activity, with others showing improvement, according to the survey of conditions released by the central bank to be used by policymakers at their September 22-23 meeting.
"Reports from the 12 Federal Reserve districts indicate that economic activity continued to stabilise in July and August," the Beige Book said.
"Most districts noted that the outlook for economic activity among their business contacts remained cautiously positive."
The report is consistent with other data suggesting the economy is starting to emerge from the brutal recession that began in December 2007.
US gross domestic prodict (GDP) shrank at a 1.0 per cent pace in the second quarter after a steep 6.4 per cent pace of decline in the first quarter. But more recent data suggest growth in the third quarter.
The Beige Book said that retail sales, the main driver of economic activity, were flat in most regions. But the "Cash for Clunkers" trade-in incentives program boosted traffic and sales for automobiles.
Most regions reported some improvement in residential real estate markets despite "downward pressure on home prices" in much of the nation. Commercial real estate demand however was "weak" around the United States, the report said.
Manufacturing was a bright spot, according to the Fed, with improvements in most regions, consistent with other surveys indicating ramped up industrial production.
