The economy grew more slowly from late August through early October, as the plummeting housing market, tighter credit conditions and more tepid consumer spending took a toll, the Federal Reserve said last week.
The Beige Book, an anecdotal look at business conditions in the Fed’s 12 bank districts named for the color of its cover, paints a picture of an economy that is slowing, but not stalling, without a big buildup in inflation pressures.
“There’s no recession yet, but it’s not an easy course,” says Diane Swonk, chief economist at Mesirow Financial in Chicago.
If soaring oil prices lead to higher gasoline costs, consumer spending could be crimped just in time for the key holiday shopping season, Swonk says. Retailers, even before the recent surge in oil prices, were growing more cautious, according to the Beige Book. (GNS)
