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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: John Carragher who wrote (451971)	9/3/2003 2:53:37 PM
From: Hope Praytochange	Respond to of 769670

nytimes.com September 3, 2003 Economy Shows Gains Over Summer, Fed Says By REUTERS Filed at 2:32 p.m. ET WASHINGTON (Reuters) - A strengthening in the U.S. economy gathered steam in recent weeks as consumers kept shopping and the long-ailing manufacturing sector flexed a little muscle, the Federal Reserve said on Wednesday. ``Reports from the 12 Federal Reserve districts indicate the economy continued to improve in July and August,'' the Fed said said in its ``beige book,'' an anecdotal snapshot of economic conditions across the country. The assessment, based on information gathered from an extensive network of business contacts, said 11 of the Fed's regions saw economic gains over the summer, with consumer and manufacturing activity rising in most areas. The Fed said five of its districts mentioned the mid-August electricity blackout that affected much of the Northeastern United States, as well as a large swath of the Midwest, but the effects ``were generally small.'' ``Even where firms were closed for several days, affected contacts suggest they are not anticipating difficulties in making up for lost production or shipments,'' it said. While the report buttressed other recent data that suggest the economy is starting to move forward fairly briskly, it also underscored a persistent problem -- the lack of jobs. ``Labor markets remain slack across the nation,'' the beige book said, adding that where there were any gains in wages, they were modest. At the same time, an increasing tab for health care pushed up overall labor compensation costs. The report showed little reason to fear a near-term flare-up in inflation. ``Although districts note price increases for natural gas, gasoline, insurance, tuition, semiconductors, and pharmaceuticals, most product prices are reported to be stable or lower, as businesses say they cannot pass along these or other cost increases to their customers,'' it said. MANUFACTURING ON THE MEND The beige book, which was compiled with information collected before Aug. 25, lent further to evidence the beleaguered manufacturing sector is on the mend, with 10 of the Fed's 12 districts saying factory activity was improving slightly to moderately. ``Various districts report solid or strengthening demand for autos and auto parts, high tech equipment, semiconductors, pharmaceuticals, and building materials,'' it said. Most areas of the country reported strong housing markets but weakness in commercial real estate, although the Fed said even the commercial market showed ``scattered signs of improvement.'' The impact from a sharp rise in mortgage rates over the past couple months was mixed, with some regions registering a decline in home lending, while others reported a rise as buyers rushed to secure loans before rates moved even higher.