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Fed chief is upbeat over US prospects
05.05.09
The chairman of the US Federal Reserve Ben Bernanke tonight gave a relatively upbeat view of America's economic prospects, just hours after figures in the UK showed some signs of recovery in the housebuilding market.
Bernanke, speaking to a Congressional committee, said while the economy was weak there were also indications that "the pace of contraction may be slowing". However, he warned that the collapse of another bank would be catastrophic.
"A relapse in financial conditions would be a significant drag on economic activity," he said.
In England the index used by Britain's Chartered Institute of Purchasing and Supply to measure activity in the construction sector jumped from 30.9 in March to 38.1 in April.
However, a reading of 50 marks the difference between growth and contraction, so the industry is still in decline, albeit at a slower pace.
