Business

Is Fed right claiming the recession is over?
by Zuzana Zelenakova

According to the latest government survey the economic situation is gradually improving in most regions of the United States of America. It seems the worst recession since the Great Depression is over. The Federal Reserve carried out a survey that had showed the economy is on its way up in this quarter. Eleven out of twelve Fed´s regions, that means areas covered by each of the twelve Federal Reserve banks, showed signs of improvement and stabilization. The only exception was St. Louis region which reported that the pace of decline of economic activity is slowing down. The survey released Wednesday showed a much brighter picture than the report in late July, when regi! ons informed that the recession is withdrawing slowly. Analysts estimate that in current quarter the economy has jumped 3 or 4 percent. That is mainly due to the fact that businesses that cut their investments during the recession are spending more. Richard Fisher, president of the Federal Reserve Bank of Dallas stays realistic about the current development: "There are presently some signs that the economy is stabilizing and even reviving in certain areas, despite mixed signals." In general, American consumers remain cautious although the recent Cash-for-Clunkers program “boosted traffic and sales” for a while. However, despite the fact that car dealers sealed some deals, other merchants had a hard time. When it comes to the real estate market it is still weak but it indicates positive development. Another case is commercial real estate that continues to trail behind. Demand for space is at record low not to mention constantly falling construction. The unemploym! ent rate in USA reached 9.7 percent in August, number which ha! s not be en seen in 26 years. And it is expected to further grow in this year and pass 10 percent line. And this factor according to the economists will restrain consumer spending.

related story (sgx15333): http://news.yahoo.com/s/ap/20090909/ap_on_bi_ge/us_economy;_...

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, ! PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 2:52 PM