"Reports from the twelve Federal Reserve District Banks indicate that economic conditions remained weak or deteriorated further during the period from mid-April through May...Manufacturing activity declined or remained at a low level across most Districts.... Demand for nonfinancial services contracted across Districts reporting on this segment. Retail spending remained soft as consumers focused on purchasing less expensive necessities and shied away from buying luxury goods. New car purchases remained depressed, with several Districts indicating that tight credit conditions were hampering auto sales. Travel and tourism activity also declined....Vacancy rates for commercial properties were rising in many parts of the country... Credit conditions remained stringent or tightened further. Energy activity continued to weaken across most Districts, and demand for natural resources remained depressed.... Labor market conditions continued to be weak across the country, with wages generally remaining flat or falling....Districts reporting on nonfinancial services indicated that for the most part activity continued to decline.... Activity continued to weaken or remain soft for providers of professional services such as accounting, architecture, business consulting, and legal services....Consumer spending remained soft as households focused on purchasing less expensive necessities. ...Travel and tourism activity declined, and vacationers are tending to spend less....

Commercial real estate markets continued to weaken across all Districts. ...With few exceptions, the District Banks reported that prices at all stages of production were generally flat or falling...Reports from a number of Districts indicated that pricing at retail remains very soft..."