Connect with us

Hi, what are you looking for?

Business News

A gloomy picture of economy projected by the Fed

The latest report from Federal Reserve shows the further deteriorating economic condition in US. There is an indication of further lowering of interest rates by the US Central Bank.
In the December edition of the Beige Book report on the economic conditions Fed said on Wednesday that economic activity can be seen to be weakening across all Federal Reserve districts.
There was a slight improvement seen in the St.Louis district encompassing Ark, Ky., Louisville, Memphis, Littlerock, Tenn, etc with brighter activities in labor and commercial real estate sectors. The overall weakness however remained widespread.
Main reasons for economic slowdown include a drastic deterioration in consumer spending, sales of vehicles, lending contraction and a sharp decline in manufacturing activities.
There were preparing themselves to face a holiday with very slow sales said the report due to shying away of the consumers from huge spending due to the financial crunch. Most districts saw the real estate market sinking due to a continuous fall in home prices. The report said however that weak sales of homes remained constant.
There were reports of a large number of defaults and delinquencies in loans from several districts which indicated continuation of tight credit conditions. Weakening in the commercial real estate sector is seen to be worse than what was reported in Beige Book’s October edition. At least fifty percent of the total of 12 districts reported a stalling or postponement of various commercial projects due to tight credit conditions.
With a lot of districts laying off labor and projecting future layoffs too, labor market continues to weaken. Report said there was an ease in price pressure in most districts.

You May Also Like

Business

State would join dozens of others in enacting legislation based on federal government’s landmark whistleblower statute, the False Claims Act

press release

With a deep understanding of the latest tech, Erbo helps businesses flourish in a digital world.

press release

#Automotive #Carbon #Canister #Market #Projected #Hit #USD New York, US, Oct. 24, 2022 (GLOBE NEWSWIRE) —  According to a comprehensive research report by Market...

press release

Barrington Research Analyst James C.Goss reiterated an Outperform rating on shares of IMAX Corp IMAX with a Price target of $20. As theaters...