What the Fed's regional banks are saying

Associated Press

Excerpts from the reports on economic conditions around the country as compiled by the Federal Reserve's 12 regional banks last week:

• BOSTON: "The New England economy is moving sideways, on net, with some sectors level to down and others up modestly. Manufacturers report flat revenues; retailers and tourism contacts say business is slow. Commercial real estate markets are depressed in the Boston area and flat elsewhere. Software and information technology markets are still tough."

• NEW YORK: "Economic activity has remained sluggish (except for continued strength in housing). Prices of goods and services generally remain stable. Hiring remains lethargic, though some signs of a pickup were noted in late August. Retail sales were on or below plan in August, though some improvement was noted in the second half of the month. Most retailers describe inventory levels as favorable and report somewhat less discounting than a year ago. Manufacturers indicate tepid business conditions, with weakness in July followed by a mild rebound. ..."

• PHILADELPHIA: "The upward trend in business activity that has been building since the beginning of the year appeared to ease in August. Manufacturers reported steady shipments and orders after several months of growth. Retail sales of general merchandise moved down from July to August although there were scanty year-over-year gains. ... Auto sales have been down, as gains in residential mortgages have been offset by declines in other types of loans."

• ATLANTA: "Contacts noted a modest improvement in economic activity in July and August, whereas assessments of future prospects were mixed. Retail sales increased, led by autos and positive back-to-school sales. Housing markets remained strong overall while commercial real estate markets continued to stabilize. Manufacturing output improved slightly. Contacts reported that leisure travel had returned to healthier levels, but business travel in the region remained weak."

• CHICAGO: "District contacts again suggested a slow and uneven expansion in the region's economy. Consumer spending remained sluggish. The residential housing market continued to be strong while softness persisted in nonresidential construction and real estate markets. Manufacturing conditions varied widely across industries."

• ST. LOUIS: "Recovery continues at a slow pace. Contacts in manufacturing report few new hires although some firms plan to expand in or relocate to the district. Some contacts report that they are restructuring with few or no layoffs. The services sector shows moderate growth with increased activity, particularly in tourism. Retail and auto sales in July and August increased slightly over 2001 levels. Sales of new homes have increased in several locations but conditions in commercial real estate markets are mixed."

• MINNEAPOLIS: "The economy appears to have grown very little from mid-July through August. Agriculture, residential construction and tourism grew. Output was flat, however, in the energy and mining sectors, consumer spending was level and commercial construction and manufacturing contracted. ... Labor markets were mixed while wages and prices were stable. Significant price increases were noted in insurance and housing."

• DALLAS: "Overall, economic growth appears to have stalled in late July and August. While some sectors, such as high-tech manufacturing and business services, continued to show signs of recovery, other areas, such as construction and construction-related manufacturing, appeared to contract."

• SAN FRANCISCO: "Contacts indicate modest economic growth in late July and August with substantial variation in conditions across and within sectors. Wage and price increases were limited. Respondents noted solid consumer demand for automobiles and other big-ticket items, but sales of other retail trade and service items generally were flat to down. Orders and sales of most high-tech and other manufacturing products were sluggish with excess capacity still a concern."