The Federal Reserve Bank of New York today reported that economic activity in the region, “declined modestly” in the first few weeks of 2014, hampered by bad weather.
The New York Fed’s report covers New York state, northern New Jersey, and southwestern Connecticut. The report is combined with those from other regional Federal Reserve banks and a national summary to produce what is known as the Beige Book, which provides some of the most timely information on U.S. economic conditions, according to the Federal Reserve.
Manufacturers in the New York Fed District reported that activity was “stable” while service-sector businesses indicated some weakening, on balance, in early 2014, according to the report.
Labor-market conditions have continued to improve gradually since the last report, according to the New York Fed. Business contacts in both the manufacturing and service sector report steady to rising employment levels. And, more businesses plan to increase than reduce staffing levels in the months ahead — especially in the manufacturing industry, the report found.
General-merchandise retailers said their sales were lower than expected in the first six weeks of the year and down sharply from the year-ago period, hurt by “unusually harsh weather in January and early February,” the New York Fed said.
“Contacts at major malls in upstate New York report that sales were weak in January and early February, due largely to heavy snow and extremely cold weather, particularly during weekends,” the report stated. “Not surprisingly, one category that has performed reasonably well is cold-weather outerwear.”
After a strong 2013, auto dealers in upstate New York told the New York Fed that new vehicle sales “weakened noticeably” in January but showed some signs of bouncing back in early February.
Tourism activity was mixed in January and early February, hindered by harsh weather but boosted by the Super Bowl, which was held in northern New Jersey, the New York Fed said.
Housing markets were mixed, while commercial real-estate markets strengthened slightly. Finally, banks report some further weakening in loan demand from consumers, little change in credit standards, and steady to declining delinquency rates, according to the New York Fed.
Contact Rombel at arombel@cnybj.com