The US economy remains weak but there are some faint signs that the pace of decline is moderating, the Federal Reserve said on Wednesday in its latest survey on business conditions around the nation.

Reports from the 12 Fed districts indicated that "overall economic activity contracted further or remained weak" but five districts noted "a moderation in the pace of decline, and several saw signs that activity in some sectors was stabilizing at a low level," the Fed said in the survey, known as Beige Book.

The latest survey, based on economic information supplied by the Fed's 12 regional banks and collected before April 6, struck as lightly more positive tone than the last report, which was released on March 4.

Even with the faint signs of improvement, the survey suggested that the recession was far from over.

According to the survey, manufacturing activity weakened across a broad range of industries in most districts, with only a few exceptions. Nonfinancial service activity continued to contract across districts.

Retail spending remains sluggish, although some districts noted a slight improvement in sales compared with the previous reporting period.

Meanwhile, residential real estate markets continued to be weak. Home prices and construction were still falling in most areas, but better-than-expected buyer traffic led to a scattered pickup in sales in a number of districts.

And nonresidential real estate conditions continued to deteriorate.

In addition, bankers reported tight credit conditions, rising delinquencies, and some deterioration of loan quality.

Wage and salary pressures eased as labor markets weakened in all districts, and many contacts continued to report job cuts and wage and hiring freezes. Employment continued to decline across a range of industries, with only scattered reports of hiring.

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

But it will be used when Fed policymakers meet to consider their stance on interest rates and other monetary issues on April 28-29.

(Xinhua News Agency April 16, 2009)