Downturn Slowing, Beige Book Report Says

Washington, DC, June 10, 2009--The Federal Reserve said in its Beige Book that the downturn may be slowing in many areas.

“Economic conditions remained weak or deteriorated further” from mid-April through May, while five of 12 Fed districts “noted that the downward trend is showing signs of moderating,” the Fed said.

The report lends support to Federal Reserve Chairman Ben S. Bernanke’s congressional testimony last week that while the pace of the U.S. contraction is slowing, the labor market is still weak and the economy may experience further job losses. Prices, except for oil, were “generally flat or falling,” the Fed said.

“Contacts from several districts said that their expectations have improved, though they do not see a substantial increase in economic activity through the end of the year,” the central bank said in the report.