Posted on: Sunday, December 2, 2001

Tourism drop in Hawai'i noted

Advertiser Staff

The U.S. economy, jolted by the Sept. 11 terrorist attacks, weakened further in October and November, the Federal Reserve said in its latest reports. Production declined at American factories and airlines and hotels struggled with a sharp drop-off in travel.

In its latest survey of economic conditions around the country, the Fed found "evidence of additional slowing in most regions" and said this outweighed the faint signs of recovery reported by a few Fed districts.

The survey, compiled from information supplied by the Fed's 12 regional banks, will be used by policy-makers when they hold their last meeting of the year on Dec. 11 to consider changes in interest rates.

The Fed report looks at several regions nationwide. Hawai'i is included in its San Francisco region. An excerpt from the report looks at that region's economy:

• Consumer and travel spending were weak, except auto sales. Sales were especially low at restaurants and many clothing stores. In Hawai'i, retail spending was off as much as 20 percent in large part because of a drop-off in tourism. Manufacturing activity declined. Sales of high-tech equipment fell and substantial layoffs continued. Real estate markets cooled and construction activity fell. Demand was solid for most agriculture products. Strong sales to supermarkets offset depressed sales to restaurants and others in the food-services industry.