Economic activity weakens across US, Federal Reserve says
Economic activity weakened across the United States in
September as consumers and businesses became more pessimistic about the economy
amid the worsening financial crisis, the US Federal Reserve said Wednesday, according to dpa.
The report known as the Beige Book, which is published eight times a year on
conditions in the central bank's 12 regions, showed consumer spending and
manufacturing had decreased in most areas.
Consumer spending on high prices items was down and many places saw a shift of
spending to less expensive discount stores, the report said.
Credit was "tight" with central bankers in several regions
"reporting reduced credit availability for both financial and nonfinancial
institutions," the report said.
The lack of available credit has been among the chief concerns of the global
financial crisis, with the government stepping in last month with a
700-billion-dollar rescue package designed to get money flowing again through
financial institutions.
The Federal Reserve also said inflationary pressures moderated slightly last
month.
"Most districts reported that cost pressures on prices had eased, although
a number of districts noted that the costs of energy, raw materials, food, and
transportation remain elevated and margins were tight," the book said.
