U.S. Economy Got Worse in Jan-Feb, Outlook "Poor"

[Lostinoz]

http://uk.reuters.com/article/pressReleases/idUKWEQ00074520090304?sp=true

Fed: U.S. economy got worse in Jan-Feb, outlook "poor"
Wed Mar 4, 2009 7:34pm GMT

WASHINGTON (Reuters) - U.S. economic conditions worsened in January and February and businesses do not expect improvement until late this year or early 2010, a Federal Reserve survey published on Wednesday said.

"National economic conditions deteriorated further," the Fed said in its Beige Book summary gathered from districts around the country. "The deterioration was broad based," the Fed added.

The report was taken from information gathered by the San Francisco Fed on or before February 23.

Battered housing markets remained "in the doldrums" in most areas, with only scattered, very tentative signs of stabilization reported, the Fed said.

Demand for commercial, industrial and retail space also fell, with evidence of more rapid deterioration than previously, the report added.

The Fed's report signaled economic conditions have worsened even after the central bank lowered interest rates to near zero and pumped hundreds of billions of dollars into the slumping economy, which has been battered by events triggered by the collapse of U.S. housing markets.

The U.S. central bank and the Treasury Department on Tuesday launched a program aimed at spurring up to $1 trillion in consumer and small business loans.

President Barack Obama February 17 signed into law a $787 billion economic stimulus package aimed at fighting the recession that officially started in December 2007.

The Fed said rising unemployment in all areas of the country has been accompanied by some reductions in wages and benefits. Consumer spending was "very weak on balance" although some districts noted some improvement after disappointing holiday sales seasons.

Manufacturing activity fell broadly despite some gains in biotechnology and pharmaceuticals products, the Fed said.

(Reporting by Mark Felsenthal, Editing by Chizu Nomiyama)

Hmm, my prediction is that pharmaceuticals is next to slump as Obama starts dabbling with our healthcare. (jmo)

[Brosia]

have they officially declared a depression yet?

[Lostinoz]

have they officially declared a depression yet?

Brosia,

There are a few talking heads calling it a depression, though as far as it being official, no. Everyone wants to compare the numbers to the Great Depression, only that is not an accurate comparison for today, in my opinion.

If we took away unemployment benefits, food stamps, and various other government sponsored programs, I think we would see a whole different set of circumstances here in the U.S.

Of course, like so many others before me have said, "It's a recession when your neighbor loses his job and a depression when you lose yours."

The area I highlighted in the above article was to show that even though these efforts by the government have been made, it is STILL worsening, yet they keep doing the same things over and over again. This just makes no sense to me. :confused: