Highlights From the Fed's Latest Economic Survey

Highlights from the Federal Reserve's survey of economic conditions nationwide. The survey, released Wednesday, is based on information collected from the Fed's 12 regional bank districts.

BOSTON:

(This region covers Maine, Vermont, Massachusetts, New Hampshire, Rhode Island and part of Connecticut)

Retailers, which reported mixed sales results over the last two months, have cut capital spending plans for this year. Many have instituted hiring freezes and some have — or are considering — laying off workers in the near future. Merchants expect consumers to be cautious for the next several quarters.

Many manufacturers indicated that revenues in some business segments have fallen at a double-digit rate, and semiconductor firms and their suppliers say they've seen revenue drop 50 percent or more compared with last year. Contacts from temporary-staffing companies reported "dismal" business into 2009, with one saying activity "fell off a cliff" in November and remained slow through January. Commercial real-estate conditions deteriorated, while home prices continued to drop.

NEW YORK:

(This region covers New York, part of Connecticut and part of New Jersey)

Retail sales were sluggish. Tourism activity in New York City has slowed substantially, with Manhattan hotels reporting a marked weakening in business so far this year. Revenues per room are reported to have fallen a record 30 percent from a year ago and appear to be running 40 percent lower in February. Broadway theaters reported substantial slowdowns in both revenues and attendance.

Housing markets were generally weak throughout the region and commercial real-estate market "weakened noticeably" in January. "There has been virtually no activity in Manhattan's office sales market," the report said. Demand for retail space contracted "substantially" — especially in the banking sector, which had been big users of commercial space. Labor conditions also "deteriorated markedly," the report said. A major New York City employment agency reported that hiring activity "virtually ground to a halt" since the beginning of the year. Large financial firms and legal firms have essentially stopped hiring. Manufacturers and other companies reported "widespread deterioration" in business conditions in February.

PHILADELPHIA:

(This region covers part of Pennsylvania, Delaware, and part of New Jersey)

Most manufacturers saw declines in shipments and new orders. Producers of primary metals and electrical equipment were hardest hit. However, makers of food products and chemicals saw demand pick up. Retailers expected sales to remain slow as long as consumers worry about job security. Merchants said shoppers are focused on the basics and shunning big-ticket items.