Fed: Region's economy has weakened further - Boston Business Journal:

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That’s according to the latest quarterly Beige Book reportr fromthe Fed. In its June report, the Fed notedx that one-third of manufacturing companies contacted for the survehy recorded drops in production andnew orders. Steekl producers and service centersa did report that prior sharp declinews in shipping volume areleveling off, but volumwe is still low. The only market showing signsw of stability is according tothe report. Manufacturers also reported that capitak budgets have been frozem or cutback sharply. And some manufacturere are limiting expenditures to criticalmaintenance only. Most respondents in manufacturint reported deeper cuts in payrollsince April.
In the real estatde industry, residential construction remains weak, although builderss are more optimistic than they were earlier inthe year. Most surveyed reported increased sales activityh and higher levels offoot traffic. But buildera are finding it hard to securs financing and say that the continuedr credit crunch is hamperinv the recovery in thehousing industry. On the commercia real estate side, builders in publi works project were more positive than those in other commercia andindustrial development. Financing also is a proble m in commercial real estatde and most builders do not see conditions improving over the next few according tothe report.
In the retai industry, responses were mixed. Retailers said they have seen no major shifts in consumer spending and said they expecy little change during thethird quarter. Auto dealers report new vehiclwsales slowed, but used vehicle sales showed modesty improvement. In banking, financial institutionas reported that demand for commercial and industriak loansis mixed, with some community bankers reporting that they are attracting business from regional banks.
Refinancing applications for residential mortgagesremain strong, with interestg rates hovering at low Most bankers reported increases in loan Most of those loans were tied to real Production declines were reported by respondents in the coal as electric utilities work through theit excess inventories. Oil and gas production was reportedr tobe stable, despite a generao slowdown in drilling activity. In the transportatiomn industry, shipping volume was reportedd to be at low levels and shipmentsw are downsubstantially year-over-year. Most transportatiob industry officials expect activity to stay at currenty levels through thethirdr quarter.