Economic activity slows in St. Louis Fed district

The services sector was one of the hardest hit; contacts in financial services reported plans to close facilities and lay off a large number of workers, with job losses also reported in educational services and publishing.

General and big-box retailers reported sales decreases in February and early March compared with the same period in 2007.

Home sales continued to decline in the district; February year-to-date home sales were down 17 percent in Memphis, Tenn., 13 percent in St. Louis and 16 percent in Little Rock, Ark. Year-to-date single-family housing permits fell in nearly all metro areas compared with 2007.

Commercial construction remained active throughout the district, with several commercial contractors reporting a positive outlook for the next 12 months.

Manufacturing activity held steady since the previous report. The number of firms that announced plans to open plants and expand operations in the near future roughly matched the number announcing plans to close plants or reduce operations.

The Current Economic Conditions report, also known as the Beige Book, is released eight times a year and is created from anecdotal reports from business and contacts in the 12 Federal Reserve districts.