"National economic conditions deteriorated further," the Fed said in its Beige Book summary gathered from districts around the country. "The deterioration was broad-based," the Fed added.
The report was taken from information gathered by the San Francisco Fed on or before Feb. 23.
Battered housing markets remained "in the doldrums" in most areas, with only scattered, very tentative signs of stabilization reported, the Fed said.
Demand for commercial, industrial and retail space also fell, with evidence of more rapid deterioration than previously, the report added.
The Fed's report signaled economic conditions have worsened even after the central bank lowered interest rates to near zero and pumped hundreds of billions of dollars into the slumping economy, which has been battered by events triggered by the collapse of U.S. housing markets.
The U.S. central bank and the Treasury Department on Tuesday launched a program aimed at spurring up to $1 trillion in consumer and small-business loans.
President Barack Obama Feb. 17 signed into law a $787 billion economic stimulus package aimed at fighting the recession that officially started in December 2007.
The Fed said rising unemployment in all areas of the country has been accompanied by some reductions in wages and benefits. Consumer spending was "very weak on balance," although some districts noted some improvement after disappointing holiday-sales seasons.
Manufacturing activity fell broadly despite some gains in biotechnology and pharmaceuticals products, the Fed said.
Tenn. economy hasn’t hit bottom yet, UT reports
Consumer Confidence
Consumer Confidence
