Below the Fold

You’ve probably been getting the headlines today that we’re turning the corner on the economy. Signs of improvement!

The Fed says regional economy shows "tentative signs of stabilization"

The Federal Reserve Bank of Kansas City is seeing a stronger pulse in the regional economy.

  Kansas City Star

The Federal Reserve said the U.S. contraction slowed across several of the biggest regional economies last month, with some industries “stabilizing at a low level.”

Five of 12 Fed district banks “noted a moderation in the pace of decline,” the Fed said today in its Beige Book business survey, published two weeks before officials meet in Washington to set monetary policy.

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The Fed cited technology equipment in the Dallas and San Francisco districts, defense companies in Boston and Cleveland, food makers in Philadelphia and San Francisco and drug firms in Boston and Chicago as industries with stabilizing or rising demand.

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“Housing markets remained depressed overall, but there were some signs that conditions may be stabilizing,” including an increase in “potential buyers,” the Fed said.

  Bloomberg

Yeah, what are they buying? Foreclosed homes on the cheap. Great.

Food ”makers”? As always, the pharmaceutical and defense industries are doing swell. And no doubt will continue to do so. But pretty much everything else...

Other banks weren’t as positive, with the Atlanta district, the Fed’s second-biggest regional economy, reporting that “activity remained weak in March.”

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At the same time, many district banks saw drops in manufacturing, non-financial services, business travel and employment, the central bank said.

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Today, a separate Fed report showed output at factories, mines and utilities dropped 1.5 percent last month, more than anticipated and matching the prior month’s decrease. The amount of industrial capacity in use fell to 69.3 percent, the lowest level since records began in 1967.