Richmond Fed Sees Malaise And Lackluster Economy

The Fifth District economy continues to weaken, the Federal Reserve Bank of Richmond said yesterday, with labor and real estate markets showing “malaise” and businesses reporting “lackluster” results.

District firms cut 75,800 jobs, or 0.5%, in November and 93,900 jobs, or 0.7%, over the past year, the Fed said, with nearly every sector represented. Employment grew only in the education and health services and government sectors. The unemployment rate jumped to 6.4%, which is below the 6.7% national rate.

Real estate conditions in the district softened, as residential permit levels fell 41.6% in November and 59.1% over the year, while housing starts dropped 22.8% in November and 43.3% over the year. Existing home sales fell 1.6% in the third quarter, the Fed said, despite an increase in the nation.

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