Economic conditions in the United States deteriorated further during the past six weeks, the Federal Reserve (Fed) said on Wednesday.

Ten of the 12 Fed districts reported weaker conditions or declines in economic activity since the last survey, which was released on January 14, the Fed said in the latest survey on business conditions around the nation, known as Beige Book.

The exceptions were Philadelphia and Chicago, which reported that their regional economies "remained weak."

"The deterioration was broad based, with only a few sectors such as basic food production and pharmaceuticals appearing to be exceptions," said the survey, which was based on economic information supplied by the Fed's 12 regional banks and collected before February 23.

"Looking ahead, contacts from various districts rate the prospects for near-term improvement in economic conditions as poor, with a significant pickup not expected before late 2009 or early 2010," the survey said.

The survey found that consumer spending, which accounts for two-thirds of overall economic activity, remained "sluggish," although many districts noted some improvement in January and February compared with a dismal holiday spending season.

There were steep declines in manufacturing activity in some sectors, and "pronounced declines overall," according to the survey.

"Markets for residential real estate remained largely stagnant, with only minimal and scattered signs of stabilization emerging in some areas, while demand for commercial real estate weakened significantly," said the survey.

In addition, reports from banks and other financial institutions indicated further drops in business loan demand, a slight deterioration in credit quality for businesses and households, and continued tight credit availability.

"With rising layoffs and hiring freezes, unemployment has risen in all areas, reducing or eliminating upward wage pressures," it also said.

The survey summarizes comments received from business and other contacts outside the Fed and is not a commentary on the views of Fed officials.

(Xinhua News Agency March 5, 2009)