US economy deteriorates further

Wednesday, 20 May 2009 00:00

From International Desk - Special Reports

US economic activities "deteriorated further" through February, dampening prospects for a quick recovery from recession, a Federal Reserve report says.

"Looking ahead, contacts from various districts rate the prospects for near-term improvement in economic conditions as poor, with a significant pickup not expected before late 2009 or early 2010," the Beige Book report said.

The report, to be used at the upcoming meeting of Fed policymakers March 17-18, cited declines in travel and tourist activities and "a wide range" of services, amid "substantial job cuts."

In manufacturing, most Fed districts reported "steep declines in activity in some sectors and pronounced declines overall."

The real estate market, which set off the economic slide, was "largely stagnant, with demand for commercial real estate weakened significantly."

Analysts say the economic downturn may be even worse in the first quarter of 2009.

Source: http://pressvt.com/