Economy Grew Slower in Some Regions: Fed
By Jeannine Aversa
Bloomberg.com
Sep 7, 2011 2:00 PM ET
The Federal Reserve said the economy grew at a slower pace in some regions of the country as shoppers limited their spending and factories curbed production.
“Economic activity continued to expand at a modest pace, though some districts noted mixed or weakening activity,” the Fed said in its Beige Book survey released today in Washington.
Chairman Ben S. Bernanke noted last month that the economy was weaker than anticipated and said policy makers will review ways to bolster growth and reduce unemployment at their Sept. 20-21 meeting. The central bank chief, speaking in Jackson Hole, Wyoming, didn’t say what tools the central bank may use.
Bernanke said “only a portion” of the economy’s weakness stemmed from temporary factors such as a surge in energy prices earlier this year. Persistent headwinds are also holding back the recovery, including high unemployment, tight credit and a flagging housing market, he said.
The Beige Book survey, released two weeks before each policy meeting, is based on information compiled by officials at the Fed’s 12 regional banks. Today’s report covers the second half of July through late August.
During the survey period, Europe’s sovereign debt crisis, a drawn out political battle over raising the U.S. debt limit and a downgrade of the nation’s credit rating by Standard & Poor’s prompted a decline in U.S. stocks.
“Several districts also indicated that recent stock market volatility and increased economic uncertainty had led many contacts to downgrade or become more cautious about their near- term outlook,” the survey said.
Downbeat Views
Seven of the Fed’s 12 regions offered more downbeat views of business conditions than in the previous survey.
Full story: http://www.bloomberg.com/news/2011-09-07/fed-says-economy-grew-at-slower-pace-in-some-regions-amid-limited-spending.html
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