Economy still worsening across U.S.: Beige Book

Not a good sign for the rest of the year.-Lou

Economy still worsening across U.S.: Beige Book

Pace of decline has slowed in some regions, Fed banks report

WASHINGTON (MarketWatch) - The economy continued to worsen across the United States in March and early April, amid scattered signs that the pace of the decline was lessening in some regions, the Federal Reserve reported Wednesday in its Beige Book account of the economy.
"Overall economic activity contracted further or remained weak," the Fed said, based on reports from thousands of business sources across the country. "However, five of the 12 districts noted a moderation in the pace of decline, and several saw signs that activity in some sectors was stabilizing at a low level."

The report, written by the economics staff at the Dallas Fed, generally agrees with comments by top policymakers that there are some signs that the economy may be getting worse at a slower pace.
The economy declined at a 6.3% annual pace in the fourth quarter, and economists are forecasting a decline of 5% in the first quarter and about 2% in the current quarter.

Almost all sectors were contracting or slowing in almost all regions, the Beige Books said. Manufacturing weakened, retail spending was "sluggish," the housing markets were "weak" and banks reported rising delinquencies and deteriorating loan quality.

Five of the 12 regional Fed banks reported some lessening in the pace of decline: New York reported the economy was contracting at a "more subdued pace." Richmond reported some businesses were beginning to provide "scattered positive reports." Chicago said the pace of decline had slowed. Cleveland reported a leveling off in the decline in new orders. Dallas said its regional economy remained weak amid signs of stabilizing at low levels.