Economy Stabilizing

From the AP:

WASHINGTON – The economy is finally beginning to show signs of stabilizing in some regions of the country, bolstering hopes of a broader-based recovery this year.

A Federal Reserve snapshot of economic conditions issued Wednesday found that most of the Fed’s 12 regions indicated either that the recession was easing or that economic activity had “begun to stabilize, albeit at a low level.”

The economy remains fragile. But the fact that some Fed regions reported signs of activity beginning to level out raises hope that the recession, which started in December 2007, is drawing to a close.

Four Fed regions — New York, Cleveland, Kansas City and San Francisco — pointed to “signs of stabilization,” the survey said. Two regions — Chicago and St. Louis — reported that the pace of economic declined appeared to be “moderating.”

Five other regions — Boston, Philadelphia, Richmond, Atlanta and Dallas — described activity as “slow,” “subdued” or “weak.” Only one region — Minneapolis — indicated that its downward slide in economic activity had worsened.

Combined, the assessments of businesses on the front lines of the economy appeared to be brighter than those they provided for the previous Fed report in mid-June.


17 Responses to “Economy Stabilizing”

  1. 1 Lauren Swartz July 29, 2009 at 12:00 PM

    The big “bank bailouts” coupled with Obama’s stimulus package may finally be having a positive effect on the economy as a whole. Likewise the market may have stabalized completely independantly of the influx of cash. Either way I’ll greet the news with optimism once we see the market for employment improve and our unemployment rate diminish.

  2. 2 Sanamjit Bains July 29, 2009 at 10:00 PM

    Hopefully this stabilization is a positive result of the stimulus packet . It will be even better if it remains stable and unemployment rate decreases.

  3. 3 Dave Crider July 30, 2009 at 8:18 AM

    This is certainly good news but I watch some of both Foxnews and CNN and haven’t heard this coming out of either news outlet. If the economy is starting to stabilize I wish they would cover it better to possibly boost consumer confidence. Then maybe we could see more signs of economic growth with each passing month.

  4. 4 Wen-Li Chan July 30, 2009 at 4:40 PM

    That is very good to know but I’m still skeptical. I know a lot of business are still struggling and the economy is still very fragile. It’s not that I’m not confiecnt at the Fed, but the Fed can only do so much to stablize the economy. The consumer’s confidence is something that the Fed has no control over. I guess when consumers like me start to see more business back on the right tracks, their confidence will come back.

  5. 5 Jessie Maguire July 31, 2009 at 8:23 AM

    Athough the economy is still fragile I think this news will give consumers confidence. For the last year or so all anyone has heard is depressing news regarding the economy and consumers have changed thier habits to fit this view. Now that there is some good news I think people might begin to put thier trust back into the economy and the Fed. There is still a lot of room for improvement but hopefully we can pull ourselves out of this economical rut soon.

  6. 6 Thomas Babcock, Japan July 31, 2009 at 9:13 PM

    Rubbish, do we forget that sept. and oct. usually bring bad news to the economy. E wave people are saying depression middle of the roaders are say 2012 real estate hits bottom ( Bob Chapman, Gerald Celente, Mish’s, Max Keiser Peter Schiff) . The commercial realestate bubble is just starting to pop. What is the USDX at 77 or 79. where are new job claims around 600,000 when two years ago it was around 300.000. The u6 unemployment is at 16.5 and rising. Housing always picks up in june and july every year, the down ward trend is still there take a look. To many factors pointing south. The speed at which we are taveling has slowed but we are still heading south.

    Don’t drink the cool aid think for yourself

  7. 7 Heather August 2, 2009 at 2:09 PM

    Why does any positive statement about the economy automatically have to be turned into a negative? The housing industry is only improving because of low prices, the unemployment rate is still bad, etc etc.Consumer faith, and consumer spending can only help in the uphill battle towards stabilizing the economy. I, like everyone else, would like to see jobs being created, for sales to go up; but with the worst recession since the great depression, patience is one thing all Americans need to adopt.

  8. 8 Jessica Tsai August 2, 2009 at 4:21 PM

    Articles such as these give hope to Americans, which is extremely necessary in a failing economy. Workers are more productive when they are optimistic and despite the downfalls of the recession, the fact is, it will take more than a couple months for us to fully make the changes necessary to pull the economy anywhere near where it used to be. Regardless of what articles mention as good or bad news, we as Americans will need to learn to take the best out of the articles we read and choose what we want to believe because there is no quick and easy fix. It seems as though the majority of us are exemplary at picking out the flaws and stating what needs to be improved but it is definitely much harder to find a real-world solution since there are so many more factors that affect the economy outside of pure economic forces that we have studied.

  9. 9 James Dugger August 2, 2009 at 6:26 PM

    To Heather,

    Positive statements tend to be turned negative because of what people are personally experiencing. Consumer confidence could possibly boost spending, but when the majority of the consumers out there are in huge debt – where is that spending really going to be coming from? I would think everyone is focusing on getting out of debt at this point, and will only splurge for necessity.

    Patience does need to be adopted, I do agree with that. Especially since majority of Americans have seen their wealth diminished, their current incomes diminished, and their security diminished – it’s very well reasonable for them to have negative outlooks. I know a few people who either lost a home, or are in the process of “walking away.” Hours have been cut,or they are no longer working, and they hear it’s getting better, but they sure aren’t feeling it get better.

    When they feel it getting better, I’m sure there will be more positive comments. What do you do when you have to choose between paying a bill, or buying food for the family? Paying rent, or paying the daycare? A lot of communication is needed, and you can’t depend on the economy swinging to get you out of situations. In some ways, staying positive and hopeful is essential. When people feel the economic swing north, the negativity will subside. Unfortunately, I think it will be far off before we feel it change directions. The main problem linked below…

  10. 10 Carolyne Abrams August 3, 2009 at 11:35 AM

    The upswing has to start somewhere and hopefully this is the beginning. Showing any sign of growth or at least stabilizing is better news than we have heard in a long time. There has been more and more reports of the economy improving with auto sales (now a big spike due to the Cash for Clunkers), as well as the housing market sales slowly increasing. I’ll take this good news anytime!

  11. 11 Amanda Smith August 3, 2009 at 4:17 PM

    Its good to hear that overall, the nation seems to be stabilizing. I was really happy to hear that San Francisco was one of the regions that reported stabilization, and that only one region reported continued economic downfall. This news sounds truely promising.

  12. 12 Alejandro Cortez August 3, 2009 at 7:12 PM

    This is definitely good news, especially when compared to the things one hears on the news day after day. The regions the blog mentions are some of the biggest and most important in our nation. My hope is that this is a small indicator of better things to come. This can be a catalyst, a shot in the arm for the rest of the regions that are still in trouble. We should, however, set realistic expectations. The job market in this area is beginning to grow, real estate sales are rising, and the economy is stabilizing (or at least no longer plunging at break neck speed). All signs of better things to come. Americans need to be patient, however, and realize that this recovery will not happen overnight.

  13. 13 Caroline Rice August 3, 2009 at 7:24 PM

    It is good to hear positive news about the economy. I think it has a positive effect on the consumers who hear about it and improves everything. While I agree with many portions of the above posts in that it is going to be a long while before we are truly out of the woods and strong as an economy. I also believe that these are general statements that may or may not take into account the effect of many seasonal industries in various parts of the country. For example, it is summer; so much of the West Coast is bringing in some kind of agricultural harvest.

  14. 14 Joseph Garcia August 3, 2009 at 11:38 PM

    In Minneapolis, I know that automotive products, electronics, and trucking are some major components of its economy. If the economy is only worsening there, these markets must still be falling pretty fast to only affect Minneapolis this much. On a positive note, it is good to know that locally, San Francisco is bouncing back. Hopefully more companies will invest in the areas that are getting better financially.

  15. 15 Maricar De Los Reyes August 6, 2009 at 3:07 PM

    It is most definitely a great thing to hear. But like David said, I wish the news would delve more into it so that the whole nation could be more informed. What exactly do they look for for signs of stabilization? Also, what about everyone that has had to cut hours and workers? How can they be helped to get boosted out of this hole. Personally, the clinic I work at has cut our hours to almost half, and we’re even closed a full day. Patients don’t come in anymore. Its nice to hear that other places are stabilizing, but I still don’t feel it for myself.

  16. 16 Hailey Cook August 6, 2009 at 8:22 PM

    Yay! This is such a positive thing, although this post was issued about quite a bit ago, things aren’t quite as stablized as one would hope but any glass is half full rather than empty reports can’t be all bad, and hopefully will spawn some spending rather than the penny pinchers hording away our conomy in their matresses.

  17. 17 Evangelina Alvarez August 6, 2009 at 8:45 PM

    This is exciting because as we’ve learned through our Aplia text, the New York region is really essential in decision making and to hear positive feedback from such a large branch is good. I hope that this is a sign of the stimulus plan working and that it continues. I think with other deals such as the Cash for Clunkers deal, they can stimulate our economy and raise gdp. Think of how many people are now paying car payments, insurance, interest on their payments, as well as gas and this all goes back into the flow.

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