A summer of stagnation. The Federal Reserve's latest Beige Book reveals that US economic activity in the second half of July and for most of August was sluggish, with several areas slowing down.
The real estate sector was particularly hard hit. The research, based on interviews conducted between entrepreneurs and economists, reveals that only 5 of the 12 regions covered by the survey have shown signs of (albeit modest) expansion: St. Louis, Minneapolis, Kansas City, Dallas and San Francisco. All the others have further yielded.
"The results of the Beige Book - commented Dana Saporta, director of US Economics at Crédit Suisse Securities - are in line with our image of an economy that is skating on very thin ice". The US economy has suffered a lot in the past three months. The fierce budget debate in Washington has had a negative effect on business confidence, which are increasingly reluctant to hire new staff. Growing fears that Europe's debt crisis will trigger a new recession on both sides of the Atlantic have unsettled financial markets. And a hurricane and an earthquake on the East Coast have certainly not improved moods.
http://business.inquirer.net/17507/us-economy-growing-at-slow-pace%e2%80%94fed http://www.thea
