The latest economic update from the Federal Reserve Board's Twelfth District says economic activity has weakened in the region, including a significant drop in tourism in Hawai'i.

The so-called Beige Book is issued roughly every six weeks and is a round up of anecdotal economic reports in the district that encompasses nine western states as well as two Pacific territories. The report said activity was off during the September-to-early October period, with sluggish retail sales, lower demand for services and anemic housing markets.

It also noted financial institutions in the region reported a decline in loan demand and credit quality, and a drop in credit availability.

"Credit availability declined significantly as banks and other financial institutions faced rising difficulties securing short-term funding," the report said. "Contacts also pointed to higher delinquency rates in all loan categories."

It also noted a drop in tourism.

"Contacts noted modest declines in tourist activity in some major tourist destinations in the district, such as Southern California and Las Vegas, the drop was more significant in Hawaii and was accompanied by layoffs there," the report said.