U.S. Recovery Is Slow, Uneven, Report Finds --- Fed's Survey Indicates Lack Of Major Bright Sports; Consumer Credit Falls
WASHINGTON -- Business leaders and bankers across the country feel the economy is improving, but slowly and unevenly with no real major bright spots.</br></br>Their opinions, summarized in the latest report from the Federal Reserve's regional banks, offer further evidence that the country's climb out of the recession may not be a strong one.</br></br>Retailers in particular said there was little evidence of strength in consumer spending. Most of the 12 district Federal Reserve banks reported that retail sales were flat or down during June and July. Retailers in the Fed district of New York said the heat wave kept shoppers out of their stores unless they happened to need fans or air conditioners. And half the retailers in the Richmond, Va., area told the Fed they thought the economy was still in a downturn, while fewer than a third said they thought the recession had ended.</br></br>The pickup in home sales that began in the spring also lost some momentum in the summer, according to people in various Fed districts. The New York Fed reported that one large builder now faces bankruptcy because a loan for a large development was not renewed.</br></br>In a separate sign that consumers aren't yet in a buying mood, the Fed reported yesterday that consumer credit in June registered its largest drop since January, when the start of the Persian Gulf War sent consumers scurrying for cover. The figures showed that credit dropped by 3%, or $1.8 billion, in June. That follows a decline of 2.2%, or $1.3 billion, in May.