More Videos
- China Slips Deeper Into Deflation, Analysts Relaxed
- Soros: The US Dollar Is Already Weak
- Lacker: Govt Safety Net Egged On Financial Risk
- Health-Care Industry Offers To Cut Costs by $2 Trillion
- A Second Stimulus in the US Is Urgent: Krugman
- US Economy To Start Growing in Second Half: Survey
- Toyota's Bleak Outlook Disappoints, Shares Skid
- Market Insider: Wall Street's Bull Is Tired but Not Out
- SEC "Railroaded" Stanford, Attorneys Say
- Defending Steve Friedman
- Lightning Round OT: Dean Foods, Windstream and More
- Lightning Round: Qualcomm, First Solar, Interpublic Group and More
- Your First Move For Monday May 11th
- Fast & Furious Trades For Monday
- A 500% Return?
- Tech Specs: Starent Networks
- Cramer: This Rally Isn’t Over
- Web Extra: Take Your Position, Wal-Mart
Text Size 
 |
AP |
The U.S. economy continued to weaken in March and early April but the speed of contraction was fading amid scattered signs the country's recession may be nearing an end, the Federal Reserve said Wednesday.
"Five of the 12 districts noted a moderation in the pace of decline, and several saw signs that activity in some sectors was stabilizing at a low level,'' according to the Fed's Beige Book summary of anecdotal reports from its 12 regional banks.
The survey was based on information collected by the Federal Reserve Bank of Dallas on or before April 6.
More news from CNBC.com:
- US Planning to Reveal Data on Health of Top Banks
- Mortgage Applications Slide, Rates Tread Water
- Banks 'Virtually Laughing' at Loan Seekers: Trump
"Housing markets remained depressed overall, but there were some signs that conditions may be stabilizing,'' the Fed said.
The U.S. central bank has cut interest rates to almost zero to beat back a severe recession sparked by the collapse of the housing market, but Fed Chairman Ben Bernanke on Tuesday said there were tentative signs the economic decline was slowing.
The survey still painted a bleak picture of an economy reeling from a prolonged recession that has cost millions of jobs, with unemployment rate reaching 8.5 percent last month.
In particular, labor market conditions were described as weak with layoffs, temporary shutdowns and hiring freezes widespread. The New York Fed district, whose banking industry has been hammered by the financial crisis, characterized the supply of available workers as "inexhaustible''.
As a result of this economic slack, districts reported downward pressure on prices, including significant discounting among retailers and many service providers cutting fees.
Consumer spending remained soft, but some districts said sales rose compared with the depressed levels in the previous reporting period.
Big ticket and luxury item purchases declined, while spending on food and necessities fared better, the Fed said.
Print
Email
Data is a real-time snapshot *Data is delayed at least 15 minutes