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BUSH ECONOMY Still In the TOILET! His BOOKEND Legacy = 9/11 ... and ... RECESSION!

With dozens of crimes in between ...

Want four more years of the same?

Vote for McPoop and His Surrogate Hillary!

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"U.S. Economy Remains Weak, Fed Finds"

"Soft Real Estate Market, Pricey Commodities Continue to Stress
Businesses"

By Neil Irwin
Washington Post Staff Writer
Thursday, September 4, 2008; D03


The economy has remained weak across most of the nation, according to
anecdotal reports from businesses collected by the Federal Reserve,
despite some recent positive signs in economic indicators.

According to the Fed's "beige book," released yesterday, business
conditions were "weak," "soft," or "subdued" across most of
the
country. Businesses reported strains brought on by a battered real
estate market, tapped-out consumers and stubbornly high prices for
staples.

"The economy is stabilizing, but at a very low level," said John
Silvia, chief economist for Wachovia. "We're still losing jobs. We're
not out of the woods at all."

The Fed's policymaking committee is almost certain to leave interest
rates unchanged when it meets on Sept. 16, reflecting continued weak
growth and an easing of commodity prices in recent months. At its
previous two meetings, the Fed left the rate at which banks lend to
each other at 2 percent.

"Consumer spending was reported to be slow in most districts, with
purchasing concentrated on necessary items and retrenchment in
discretionary spending," said the beige book, which compiles reports
from companies across the country.

Tourism was reported to be weak in Hawaii, demand for auto parts
diminished in New England, and residential construction in parts of
the Midwest rapidly declined. Sales of furniture and household
appliances were weak almost everywhere, and auto sales were falling,
especially for SUVs and trucks.

In the past two weeks, indicators on the health of the economy have
been better than initially forecast. Gross domestic product grew a
surprisingly strong 3.3 percent in the second quarter, and yesterday
the Commerce Department reported that new orders to factories rose 1.3
percent, considerably better than the 0.8 percent gain economists were
expecting.

Indeed, there were glimmers of hope in yesterday's Fed report,
captured in the weeks leading up to Aug. 25. Its language about the
business environment, while dour, has been little changed in the past
six months. That suggests that while the economy is weak, it is not
experiencing a new major dip. And the report featured scattered bright
spots in the economic outlook, including in the agricultural, energy,
and mining sectors, and from international tourism.

"Energy and mining activity were strong and expanding in all of the
districts that reported on those sectors," the beige book said,
reflecting continued high prices for raw materials.

The real estate sector, however, remained dismal, as conditions
"weakened or remained soft" in every part of the country except Plains
states served by the Federal Reserve Bank of Kansas City. Commercial
construction showed signs of weakening in all parts of the country
except Texas and surrounding states -- likely because oil and natural
gas production in that area has boosted the regional economy.

Prices remained high across the nation, but there are some signs that
the pressures are abating as the prices of oil and other commodities
begin to fall on global markets. "Business contacts in a number of
districts indicated that they had increased selling prices in response
to the high costs for their inputs," but wages were not rising
rapidly, given the soft labor market, the report said.

"Businesses have a high level of uncertainty about what future sales
are going to be, what their access to credit will be," Silvia said.
"Given that uncertainty, it's not surprising that many are reluctant
to invest and hire workers."

http://www.washingtonpost.com/wp-dyn/content/article/2008/09/03/AR2008090301939.html

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