Fed: Economic conditions continue to weaken - Business First of Columbus:

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The Fed’s Beige Book economic analysis found that itsCleveland district, whicj encompasses Ohio, eastern Kentuck and western Pennsylvania, was one of 10 branchez to track worsening conditions since mid-January. Only two of the Fed’z branches, those in Philadelphia and Chicago, reportedc conditions as steady, but In the Cleveland residential construction remained sluggish with no expectations for a turnarouncdthis year. The retail industry notched slighy improvement, but the Fed said new vehicles salesremainef weak.
• Manufacturing output continued at aslowere pace, falling more than 25 percent year-over-year on Expectations for soft demand stretch into the next few contacts told the Fed. Auto production plunged in January comparec with December and ayear ago, the Fed said. Like residential builders, commercial construction companies told the Fed they expecy a significant slowdown in business to continue throughthe year, thougyh public works and energy projectds are seeing some growth. Most contacts reported cutting • Commercial and industrial lending at regiona banks remained flat or down compared withrecent months.
Consumerf lending appears to be stable to slightly up, with some bankers pointing to home equity lines of credift as a growing sector. • Energy production has remained though industrial demand along with oil and gas drilling have fallen. Several contacts told the Fed they plan to cut spendingf in the nextfew months, some citing troubles accessingv credit. • Transportation activity remained low with little change inrecentr weeks.
Conditions are expected to remainn slow or decline further throughoutthe year, the Fed