The report showed overall economic growth in the Cleveland Fed’s fourth district, which includes Ohio and portions of Pennsylvania, Kentucky, and West Virginia, was slow from Mid-November to December. Manufacturing productivity remained steady, although auto production dropped. Retail sales were down and employment levels were largely unchanged.
But, Bob Sadowski, an economic analyst for the Federal Reserve of Cleveland, says there were some bright spots, especially in commercial building and construction.
Bob Sadowski: Most of our contacts told us that their backlogs have increased significantly since the past cycle and they anticipate activity levels in 2008 to surpass that in 2007.
But Sadowski says it’s consumers that will have the most economic impact, since consumer buying makes up two-thirds of the economy.
Tasha Flournoy, 90.3.