During a speech in New York yesterday, Roger W. Ferguson, the vice chairman of the Fed, said, "Despite the sharp weakening in sentiment, household spending appears thus far to have held up well," according to a transcript released by the Fed.
This contributed to a sharp weakening in average prices of all co-ops, off 29percenttoto $918,795, the report found.
Mr Dales added: "This survey is a stark reminder that the UK economy is vulnerable to a sharp weakening in overseas activity.
Any sharp weakening in China, which has become a key engine for global growth, would be unwelcome news for the rest of the world, especially at a time when the United States and Europe are struggling to reduce heavy debt loads and high unemployment levels, and as Japan is still grappling with the aftermath of the earthquake and tsunami.
The sharp rise in private-sector external debt leaves borrowers exposed to a sharp weakening of the lira, especially as the boost to competitiveness from a weaker lira will be more than offset by the expected weakness of external demand, especially in 2009.All of this suggests that Turkey will aim to get an IMF deal sewn up as soon as possible.
State-run commodity companies are also taking precautionary measures to respond to the sharp weakening of the pound against the dollar.
Investors dumped exporters on a sharp weakening of the dollar, which fell to 103.22 yen from above 105.
A sharp weakening of the dollar, which brought the greenback to its lowest level against the yen in more than seven months, had little impact on the stock market.
The sharp weakening of the U.S. dollar, expectations of higher inflation and speculation has sent oil up this week to $74 a barrel, testing the highest levels in a year.
