The economy is showing signs of stabilizing in some regions of the country – especially in parts of the Northeast and Midwest – bolstering hopes of a broader-based recovery this year.
Economic conditions in the Richmond, Va., district, which includes the Carolinas, however, remain “weak.”
A Federal Reserve snapshot of economic conditions issued Wednesday found that most of the Fed’s 12 regions indicated either that the recession was easing or that economic activity had “begun to stabilize, albeit at a low level.”
The economy is still fragile. But the fact that some Fed regions reported signs of activity beginning to level out raises hope that the recession, which started in December 2007, is drawing to a close.
Four Fed regions – New York, Cleveland, Kansas City and San Francisco – pointed to “signs of stabilization,” the survey said. Two regions – Chicago and St. Louis – reported that the pace of economic declined appeared to be “moderating.”
Five other regions – Boston, Philadelphia, Richmond, Atlanta and Dallas – described activity as “slow,” “subdued” or “weak.” Only one region – Minneapolis – indicated that its downward slide in economic activity had worsened.
Combined, the assessments of businesses on the front lines of the economy appeared to be brighter than those they provided for the previous Fed report in mid-June.
Nationally, the residential real estate remained “soft” in most Fed regions, though “many noted some signs of improvement.” By contrast, commercial real-estate activity weakened further.
In the Richmond district, residential real estate agents gave mixed reports.
One Fairfax, Va., Realtor described the market for houses priced between $400,000 and $1.2 million as “hot,” while Realtors in Greensboro and Asheville reported sluggish house sales. The Asheville contact said his area was “buckling down and weathering the storm.” The district covers the Carolinas, Virginia, Maryland, most of West Virginia and the District of Columbia.
Across the district, retail and service firms made less money, paid workers less and kept staffing levels stable or reduced ranks, according to the report.
Retailers were “fighting for a little piece of what money is out there,” one manager at a chain department store outside Washington, DC, told the Fed. Generally, big-ticket sales suffered. A few building supply stores in coastal South Carolina reported an uptick in sales. And while sales of US-made automobiles languished, dealers of foreign-made automobiles reported sales were soft to “pretty good.”
Hospitals, however, reported steady demand. An executive at a hospital in central North Carolina said the hospital was starting to see more unemployed patients.
Full Story: Charlotteobserver.com
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