South Florida Real Estate Blog - Updates & Realty News

Economic activity is stabilizing or improving in most of the United States, according to a new government survey, adding to evidence that the worst recession since the 1930s is over.

The Federal Reserve's snapshot of economic conditions backs predictions by Fed Chairman Ben Bernanke and most other analysts that the economy has started to grow again in the current quarter.

The Atlanta Fed, which covers Florida, reported that most businesses in the region saw ``signs of stabilization.'' Two bright spots were auto sales, which saw a spike thanks to the popular cash-for-clunkers program, and manufacturing, which reported new orders and increased production levels. Retailers and tourism operators reported that spending was ``little-changed.''

``The recession is moderating in Florida. That's undeniable,'' said Chris Lafakis, an economist with MoodysEconomy.com.

But the continued housing crisis and worries that state population growth may have stalled -- or even shrunk, as the University of Florida believes -- could make the state a national laggard in an eventual rebound, he said.

``It will be very difficult for the economy to meaningfully recover and expand . . . in the absence of a stabilization in house prices,'' Lafakis said.

While sales of existing homes were up year-over-year, prices were down as unsold inventory continued to weigh on the market, the report found. complete story

Source: The Miami Herald - Jim Wyss

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Posted by Real Estate - Associates on September 11th, 2009 3:02 PMPost a Comment (0)
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