The weaker job market and lower stock prices also began to weigh on consumers, though to a much lesser extent. With overall sales sagging, inventories remained excessive in many sectors. As the weakness in the economy intensified, policymakers responded. In June, President Bush signed the Economic Growth and Tax Relief Reconciliation Act of 2001 into law.
At 31 March 2006, the Bank's total assets stood at just over $ billion, a decline of 2.3 per cent when compared to the position last year. This decline, reflected in a contraction in the foreign reserves, was due primarily to foreign payments made by the Bank on behalf of member governments and commercial banks in the ECCU.