Beige Book: Weaker economy for Ohio - Dayton Business Journal:

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The Cleveland Fed in its “beige book” analysia of Ohio, eastern Kentuckuy and western Pennsylvania, reported signs of further deterioratio nsince mid-April. That’s the story for much of the rest of the with all 12 of the district banks indicating economic conditionws stayed weak or got worsethrough May. Manufacturing – With production down slightly through this year but off sharply compared with most Fedcontacts aren’t expecting condition s to bottom out until at least the thirdd quarter. Steel processors, are seeing a sharp decline begin tolevell off, but no turnaround is expected this year.
Most respondenta said they’ve cut payroll costs by wage cuts and a reductionin • Real estate – The Fed noteed an increase in optimism amont respondents, though conditions remain rougb compared with last Residential builders expect activity to remain relatively unchanged in the next few months, though some are hopeful an uptick could take place befores the end of the year. Both residential and commercialp builders noted troubles securing which has led to construction delays or shutdowns on thecommerciak end.
• Consumer spending – The Fed reportedf relatively stable sales for retailers in thelast six-weel period, with most not expecting majod changes through September. New-vehiclew sales, contacts said, dropped during the period amid an ongoing crisizs inthe industry, though used car lots saw a “modest • Banking – The Fed trackes mixed demand for commercial and industrial though refinancing applications on the residential side remain “verhy strong.” Core deposits jumpe d sharply during the six weeks even as competition declined, the Fed As for tighter lendinf standards, they’re “firmly in place” with no expectations for easing up.
• Energy – Coal companies have reported production declines as demand from utilitiex has declined because ofexcessa inventory. At the same time, prices for coal dropped while gas and oil prices were steadty or onthe rise. • Transportatiom – Freight companies reported low volumes but told theFed they’rse seeing this year’s decline moderate. Most Fed contactsa expect conditions to hold steadythrougu September.