Skip navigation
Watchlist Sponsored By :
Economy Video Gallery
Thai Prime Minister, Abhisit Vejjajiva, is confident the economy can achieve a GDP growth of 3.5% in 2010. He tells CNBC...
CNBC's Maria Bartiromo discusses what to expect next week in the financial markets.
CNBC's Larry Kudlow says the alleged terrorists should be tried in military courts and asks where American optimism is.


Current DateTime: 10:50:04 15 Nov 2009
LinksList Documentid: 24355697

FEATURED QUIZZES


Current DateTime: 10:50:04 15 Nov 2009
LinksList Documentid: 33793611
  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?

  • The Many Myths of Coca-Cola

      Can you tell which statements are true, and which ones are just rumors?

  • Think You Understand Markets?

      We've selected some questions from the Financial Industry Regulatory Authority's test of investor knowledge. See how you do ...


Current DateTime: 10:50:04 15 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
Fed Sees Weakening US Economy, Rising Prices
By: Reuters | 16 Apr 2008 | 03:14 PM ET
Text Size

Economic conditions are weakening across much of the United States at the same time food, fuel and raw material prices are increasing, the Federal Reserve said.

In its anecdotal Beige Book summary of regional economic conditions, the Fed said manufacturers reported widespread increases in raw material prices and planned to raise selling prices to recover those costs.

"In particular, price increases were consistently reported for food products, fuel and energy products, and many raw materials," the U.S. central bank said.

"More specifically, increases in the price of chemicals, metals, plastics and other petroleum-based products were commonly cited," In a further sign that inflation pressures could be building, the Fed said that despite generally weaker labor markets, there were some reports of wage pressures and continuing shortages of skilled workers.

There were few bright spots in the Fed's summary of economic activity between March 5 and April 7, when the current report by the New York Fed was compiled.

It did say tourism was up in several districts, as foreigners took advantage of dollar weakness to save on U.S. vacations.

Housing markets and home construction remained sluggish throughout most of the country, but the Fed said there were "few signs of any quickening in the pace of deterioration."

Consumers were clearly under pressure.

The Fed said spending at retailers was softening across the country and that new-car sales were flat or declining in most districts.

Banks said that consumer loan demand was weakening but that lending standards were becoming stiffer and asset quality was deteriorating.

The nation's housing markets have been under severe stress since a meltdown last August in subprime mortgage markets, and the Fed report indicated that was continuing.

Many Fed banks said home prices were being pushed downward, including in Boston, New York, Philadelphia, Richmond, Atlanta, Chicago, Minneapolis, Kansas City and San Francisco.

The Fed surveys dozens of businesses and banks in each of its 12 districts at about six-week intervals to compile the Beige Book.

Some of the anecdotal findings offer particular insight into conditions in individual regions.

For example, the Chicago Fed reported that while service companies, such as small trucking companies, were being driven out of business by soaring diesel fuel prices, some manufacturers said they could not sell their products for enough to recover costs.

"A contact in the construction industry reported that wallboard prices had declined to the degree that they no longer covered production costs," the Chicago Fed said, a reflection of the building downturn.

In Dallas, there were shortages of skilled workers and labor markets were described as "tight" but it was not solely because of economic conditions.

"Some contacts say tighter enforcement of immigration laws has led to scattered farm labor shortages, notably for harvesting vegetables and fruit," the Dallas Fed said.

Copyright 2009 Reuters. Click for restrictions.
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • Warren Buffett and Bill Gates spoke to Columbia students, and Buffett made the students a startling offer.
  • Brian L. Roberts
  • For the chief of cable company Comcast, growth has been about making deals – generally very large deals.
  • Some companies may start using insurance to shift carbon risk from their balance sheets to maybe... yours?
  • The president and founder of Genesis Today wants to improve America’s health, and thinks Wal-Mart can help.
  • Switzerland's privacy watchdog is taking legal action to force Google to make changes to its Street View service.
ADD COMMENTS
Remaining characters


Current DateTime: 01:03:48 15 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:02:04 15 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:02:04 15 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:02:04 15 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters