FED Report Sees Recession Ending
The recession is ending and the economy is finally growing again. That’s the message implicit in the Federal Reserve’s latest survey of businesses around the country, which found economic activity stabilizing or improving in most regions. Economists warn the expansion is fragile and will have staying power only if consumers start spending more money. Rising unemployment that kept Americans cautious could make for a plodding recovery in the months ahead. All but one of the Fed’s 12 regions indicated economic activity either was “stable” showed “signs of stabilization” or had “firmed,” according to the Fed survey.

The one exception is the St. Louis region, which reported the economic decline is “moderating.”  Among Fed districts, tourism activity has been steady, but business travel is said to be down markedly in the New York District. In the Southeast, travel-related spending remained sluggish in most of the region.  Restaurant and hotel spending was subdued in the 10th District, which includes several Western and Midwestern states. (Pages 5B, USA Today; B11, New York Times; A14, Washington Post; www.ajc.com/Business; Travel Advance, September 10)