US economic activity continues to be slow Fed

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WASHINGTON, Sept 4 (Xinhua) US economic activity continued to be slow during the past one month as consumers and businesses were squeezed by high costs for energy and food, the Federal Reserve said yesterday. brThe pace of economic activity has been slow in most districts, said the Fed in a nationwide survey, which is based on economic information supplied by the Fed's 12 regional banks and collected on or before August 25. brMany described business conditions as weak, soft, or subdued, it said. brAccording to the survey, consumer spending, which accounts for two-thirds of overall economic activity, was slow in most districts, with purchasing concentrated on necessary items and retrenchment in discretionary spending. brTourism activity was mixed but received support from international visitors in several districts, and the demand for services eased in most districts. brThe transportation industry was also adversely affected by rising fuel costs. brManufacturing activity declined in most districts but improved somewhat in Minneapolis and Kansas City. brIn most districts, residential real estate markets remained soft. Commercial real estate activity was slow in most districts, and some reported further slackening in demand for office and retail space. brMost districts reported easing loan demand, especially for residential mortgages and consumer loans. Lending to businesses was mixed. brMeanwhile, almost all districts continued to report price pressures from elevated costs of energy, food, and other commodities. brThe survey, or Beige Book, summarises comments received from business and other contacts outside the Fed and is not a commentary on the views of Fed officials. brHowever, information from the survey will figure into discussions at the Fed's next policy-making meeting to be held later this month. brMeanwhile, economic pinch can be felt in many areas in New York City, said The New York Times yesterday. brOn the campaign trail, in boardrooms and around kitchen tables nationwide, much of the talk about the economy is dire, said the paper. Homeowners are facing foreclosure, major banks have failed and Wall Street has laid off thousands of workers. brIn Albany, the capital of the State of New York, Governor David A Paterson has invoked the great depression in warning about the severity of the recession he says is under way, according to the paper. brAcross the city, owners of independent businesses agree that the city is in the throes of an economic downturn, the paper said. Consumers are feeling pinched ... credit is harder to come by, and higher food and fuel costs are eating into profits. brHowever, the paper noted that many have said that they are not feeling deep pain from the slowdown-at least not yet. brThe paper cited the case of American Apparel, a fast-growing chain that sells T-shirts and other basic clothing designed for urban youth, to support this argument. brIt has opened two stores in New York City in 2008 and plans to open four more before year end, according to Adrian Kowalewski, the company's director of corporate finance and development, the paper said. brMoreover, the effect of the mortgage crisis and the decline in real estate values has not been as severe in New York as in other parts of the country, it added. brStill, some business leaders and economists say it is only a matter of time-possibly just weeks-before the city gets lashed by the same negative forces that are dragging down other parts of the country, the paper noted.