Retail Sales, Job Market Soften | Federal Reserve finds companies spending more, but mixed results in passing on higher prices
The economy showed further signs of slowing in the beginning of the year, marked by softening in retail sales and a slackening in the job market, according to a recent report by the Federal Reserve Board.
In its so-called Beige Book, an anecdotal look at the economy named for the color of the report’s cover, the reserve board also said firms reported paying higher prices for raw materials, but were having mixed success passing along the costs. Positives included strength in tourism, energy and agriculture.
The report will be used by Federal Reserve policymakers when they gather March 18 to discuss interest rates. The board is widely expected to cut its target for short-term rates - perhaps dramatically - this month, according to a market in which investors bet on future Federal Reserve moves.
Challenging Year
According to the Fed’s review of Connecticut’s economy, it found that retailers in most parts of Connecticut reported mixed results and said they expect 2008 to be a “challenging” year.
Sales of home-related and big-ticket items fared worse than sales of clothing, shoes, accessories, TVs and sporting goods.
Manufacturers, meanwhile, saw little change in sales, but expressed “growing concerns” about the financial market turmoil and the state of the overall economy. One manufacturer reported slower payments from customers.
Financing for commercial real estate projects deteriorated. Rents for office space in Hartford, as well as in Boston and Providence, however, were holding steady.
However, the housing market remained a low point. Potential home buyers were waiting on the sidelines, in part because of economic concerns.
WBJ Web Partners
Most Recent
Most Recent
0 Comments