For the first time this year, the economy slowed in several U.S. regions this spring. High gas prices weakened consumer spending, and the Japan crises reduced manufacturing output. Four of the Federal Reserve’s 12 bank regions suffered slower growth in April and May, compared with earlier this year, a Fed survey reported today. The report confirmed a slew of data that portray a national economy whose growth has faltered. Hiring has slowed, orders to factories have declined and home prices have fallen.
Fed banks in New York, Philadelphia, Atlanta and Chicago say growth weakened in those regions. Baton Rouge and the rest of South Louisiana are in the Atlanta region. By contrast, the Fed regions in Boston, Cleveland, Richmond, St. Louis, Minneapolis, Kansas City and San Francisco say growth there remained steady. The Dallas region, which includes north Louisiana, was the only one to report accelerating growth, mostly attributable to higher oil prices, which benefited that region’s energy industry.
