Economic

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11/27/2010

Economic Activity and Federal Open Market Committee

After reading a few states, the economic activity of New York seem to be most interesting. Despite of the recession, retail sales have running roughly on the same par with a year ago. Some stores are doing better than the others, some stay at the same level. There are a few stores in Manhattan somewhat doing a lot better than the rest of the region, this is probably due to tourism. Manhattan hotels report that occupancy rates remained close to 90 percent in September, while room rates continued to run 10-15 percent ahead of a year earlier. Despite the fact number of tourists in New York compare to the other states, the housing markets still remain very weak, the weakness was partly attributed to the expiration of the home buyer tax credit. New York City is a city that is known for the ability to create jobs. In the month of October, the employment continues to drift down; as the pace of layoffs appears to have picked up a bit lately some financial firms are hiring lawyers and accountants but not much in other areas. On the other hand, the financial developments areas, small to medium banks report that loan demand was generally steady overall, a moderate increase in demand of residential and commercial mortgages.

The economic activity of Kansas City is a lot better comparing to New York City. In the month of September, there was an uneven growth in many sectors, activity picked up a lot in this month. Restaurants, hotels and general retailers reported a rebound in activity but auto sale still remained kind of soft. The sale in retail is relative higher than expected relative to last year. Restaurants reported much higher sales than a year ago and anticipate future sales gains going forward. In real estate and construction industry, activity decline a little bit. Real state decrease is perfectly normal because of the expiration of tax...