Beige Book Sees Recession Ending in June

The U.S. economy remained mostly weak over the past two months, but showed some signs of beginning to rebound from recession, the Federal Reserve said in an economic report released Wednesday.

Commonly called the Beige Book, the report is drawn from information in each Federal Reserve District and published eight times each year. This one was compiled by the Federal Reserve Bank of Dallas and contains information collected before Jan. 9.

he report said that it appears the ongoing recession will end by June. This view may signal that the Fed is not contemplating any new cuts in interest rates, Bloomberg said.

Manufacturing was weak or down throughout much of the country, but it too showed signs of stabilizing the Fed said. This is important because the manufacturing sector accounts for about 20% of the overall economy and is a major customer base for the trucking industry.

The report noted that retail sales picked up late in 2001 but was generally weak for the period and the employee situation remains soft. Housing remained strong in most areas, although there was some weakness.

Prices declined for most goods and services except for security, health care and insurance. With little inflation, the Fed would be able to cut interest rates again if it feels it is necessary to further spur economic activity. The central bank is scheduled to meet at the end of the month.

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