Sluggish in September

[timework@xxxxxxxxx (Tom Walker)]

Fed: Economy 'Sluggish' in Aug, Sept

WASHINGTON (Reuters) - The Federal Reserve on Wednesday said the U.S.
economy remained ``sluggish'' even before the attacks on New York City and
Washington last week that have heightened fears of a recession.

``Report from Federal Reserve Districts generally indicated that overall
economic activity remained sluggish in August and early September, with
several suggesting that activity slowed further,'' the Fed said in its
``beige book'' report. The report is an anecdotal survey of economic
conditions across the United States and was compiled by the Federal Reserve
Bank of Chicago.

The ``beige book'' reflected information gathered before Sept. 10, the day
before hijackers took over four airliners and used them in deadly attacks
that leveled the World Trade Center and a portion of the Pentagon near
Washington.

The attacks may have sapped consumer and business confidence, analysts say,
and, after an anemic 0.2 percent annual rate of economic growth in the
second quarter, raise the chances of a recession.

The report said consumer spending was ``flat to down'' in the survey period
and was not boosted much by income tax refunds mailed out over the summer.
``Federal income tax rebates had only a limited effect on spending in
August, with New York and Chicago indicating no significant impact, while
the Atlanta report suggested tax rebates along with heavy discounting
boosted overall sales,'' the Fed said.

The Fed also said labor markets ``continued to ease'' in most parts of the
country and wage pressures softened.

Tom Walker
Bowen Island, BC
604 947 2213