Economic activity across the United States weakened further in November, according to a report released Wednesday by the U.S. Federal Reserve.
Since the Fed released its last beige book in mid-October, economic activity has softened further across all 12 of theFederal Reserve districts, which include major cities such as New York, Cleveland, Richmond, Atlanta and Chicago.
“Districts generally reported decreases in retail sales, and vehicle sales were down significantly in most Districts,” said the beige book, which is based on information collected before Nov. 24.
The report also noted that tourism spending “was subdued” in a number of districts and reports on the service sector “were generally negative.” Additionally, the report found that manufacturing activity has declined in most districts.
The U.S. housing market was also bleak. Nearly all districts reported weak housing markets, adding that selling prices have taken a beating and sales activity is slow, but at least, stable.
Meanwhile, the report finds that commercial real estate markets generally declined in most districts and lending standards have tightened.
Districts also reported weak conditions in the labor markets and said pressures on prices have eased.
Fed officials will review the anecdotal information at their policy meeting on interest rates next week.
Meanwhile, service-sector activity in the U.S. dropped deeper into recession in November, the Institute for Supply Management said Wednesday.
The ISM said hat the group’s overall index for non-manufacturing activity slid to 37.3 in November, a sharp drop from 44.4 in October, and far worse than the expected reading of 42.
Separately, the number of private sector jobs fell 250,000 in the U.S. in November, according to ta report released Wednesday by payroll giant Automatic Data Processing Inc.
U.S. economy weakens in November: Beige Book
- By: IE Staff
- December 3, 2008 December 3, 2008
- 14:55