29 November 2001, 12:03 Fed's Beige Book Reflects Continuing Softness
The U.S. economy remained soft in October and early November, with non-auto consumer spending "spotty" and the surge in auto spending entirely
reversible, the Federal Reserve's beige book showed Wednesday. Prepared by the Richmond Fed on date prior to November 19, the beige book gives a reading of conditions in Fed district banks of a mixed economy, with a generally soft appearance. Most regions and sectors continued to see some slowdown, with a few districts reporting signs of recovery. Consumer spending got a boost from auto sales, which were driven to "exceptional levels" by "aggressive financing," the beige book noted. However, the Fed said that "auto dealers expressed concern that sales in coming months would fall as incentives ended." This is made more disconcerting by the fact that non-auto sales were generally weak in
October and early November, in some districts still below pre-September
11 levels, and the outlook was "mixed" on whether this area will improve
much in the coming holiday season.
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