Beige Book report not good

Business conditions have weakened across the Carolinas in recent weeks, a new federal report says.
The Federal Reserve’s anecdotal Beige Book report of economic conditions, released Wednesday, says that even stronger industries, such as commercial real estate, have started to feel the pain of the economic pinch. And industries already doing poorly, including retail and manufacturing, slumped further.
The report covers the Federal Reserve’s Fifth District, including the Carolinas, Virginia, Maryland, the District of Columbia and most of West Virginia. Among the report’s findings.
Retail sales across the district fell, particularly of big-ticket items. A department store manager in central North Carolina told the Fed that sales contracted, and retailers across the region made deep cuts in employment.
Revenue at services companies has declined. A health care executive in central North Carolina told the Fed that people who had lost their jobs, and thus their health insurance, had cut back on visits to their primary-care doctors. The executive said he was worried that sicker people would be visiting emergency rooms with no way to pay.
Manufacturing dropped sharply. The recent furniture market in High Point was lightly attended, a furniture executive told the Fed, with low order volume. A North Carolina paper manufacturer said the unavailability of financing was crippling his business, with the company in danger of failing in the next six months if the situation didn’t improve.
Exports, which had held up strong earlier this year as the dollar fell against other currencies, fell as the dollar continued to strengthen.
Commercial lending dropped. A banker who covers the Carolinas told the Fed that the financial portfolios of his clients particularly consumer-related businesses were showing continued deterioration.
Residential real estate remained generally sluggish. A Realtor in Greensboro told the Fed that several builders in the area were on the verge of closing shop.
Commercial real estate, generally an area of economic strength regionally, also started to slip. Rental rates held steady, but a Raleigh broker told the Fed that there had been an uptick in broker incentives lately. Vacancies for office space in Raleigh also rose, and financing was harder to find for commercial real estate companies in general.
Contacts on the Outer Banks told the Fed that the fall season had been very soft.
The temporary employment market saw weak demand for workers. An agent in Raleigh told the Fed that people were willing to get paid less in order to keep working.
In one bright note, farmers took advantage of the weather to plant grains ahead of schedule in North Carolina. They also reported a swift start to the Christmas tree season