The US Federal Reserve has said the country’s economy continued to weaken in March and early April but the speed of contraction was fading.
‘Five of the 12 districts noted a moderation in the pace of decline, and several saw signs that activity in some sectors was stabilising at a low level,’ according to the Fed's Beige Book summary of reports from its 12 regional banks.
The report said housing markets remained depressed overall, but there were some signs that conditions may be stabilising.
The US central bank has cut interest rates to almost zero to beat back a severe recession sparked by the collapse of the housing market, but Fed Chairman Ben Bernanke said on Tuesday that there were tentative signs the economic decline was slowing.
The survey still painted a bleak picture of an economy reeling from a prolonged recession that has cost millions of jobs.
In particular, labour market conditions were described as weak with lay-offs, temporary shutdowns and hiring freezes widespread As a result of this economic slack, districts reported downward pressure on prices, including significant discounting among retailers and many service providers cutting fees.
Consumer spending remained soft, but some districts said sales rose compared with the depressed levels in the previous reporting period.
