Beige Book: Weaker economy for Ohio, region since mid-April - Nashville Business Journal:

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The Cleveland Fed in its “beige book” analysise of Ohio, eastern Kentucky and western Pennsylvania, reported signs of furtherf deteriorationsince mid-April. That’ss the story for much of the rest of the with all 12 of the district banks indicatintg economic conditions stayed weak or got worssethrough May. • Manufacturing – With production down slightly through this year but off sharplyt comparedwith 2008, most Fed contacts aren’ft expecting conditions to bottom out until at leasf the third quarter. Steel processors, are seeing a sharpp decline begin tolevel off, but no turnaround is expectede this year.
Most respondents said they’ve cut payroll costx by layoffs, wage cuts and a reductionn in hours. • Real estated – The Fed noted an increase in optimismamongf respondents, though conditions remain rough compared with last year. Residential builders expect activity to remain relativelyy unchanged in the next few though some are hopeful an uptick could take placed before the end of the Both residential and commercial builders noted troublessecuring financing, which has led to constructio delays or shutdowns on the commercial end.
Consumer spending – The Fed reported relativel y stable sales for retailers in thelast six-week period, with most not expectinf major changes through September. New-vehicle contacts said, dropped durinyg the period amid an ongoing crisis inthe industry, though used car lots saw a “modesg improvement.” • Banking – The Fed tracked mixe demand for commercial and industrial though refinancing applications on the residentia side remain “very strong.” Core deposits jumped sharply during the six weeksa even as competition declined, the Fed As for tighter lending standards, they’re “firmly in place” with no expectationsx for easing up.
• Energy – Coal companies have reportedf production declines as demand from utilities has declineds because of excess At thesame time, prices for coal dropper sharply, while gas and oil prices were steadg or on the rise. Transportation – Freight companies reported low volumes but told theFed they’res seeing this year’s decline moderate. Most Fed contact expect conditions to hold steadythrough September.