Economic growth slow in region including LI

The economy in the Federal Reserve district that includes Long Island grew slowly during six weeks in October and early November, mirroring a national trend.

In a three-page report released Wednesday, Fed economists presented a mixed picture of the Second District, with gains in tourism offset by impending layoffs on Wall Street and increased pessimism among consumers.

The district includes New York State, Puerto Rico, the Virgin Islands and portions of Connecticut and New Jersey. The report, called the Beige Book, was prepared for the Fed's interest-rate-setting committee and covers Oct. 6 through Nov. 17.

"The Second District's economy has continued to grow slowly since the last report" covering September and early October, the Fed said. "The labor market has generally been stable."

Consumer spending, which accounts for about 70 percent of economic activity, grew modestly, though discounts spurred much of the traffic. "Prices are reported to be flat to down slightly," the Fed said, adding that sales were little changed from a year ago.

Tourism was described as "robust," with hotel occupancy rates in New York City hovering around 90 percent. However, while Broadway shows produced double-digit percentage increases in revenue, attendance was down 5 percent to 10 percent from 2010.

Manufacturers and service companies in the district said they planned to hire more workers in the next six months.

But investment banks, stock brokerages and insurance companies are contracting. One source told the Fed there were "several thousand layoffs reportedly in the pipeline in the New York City area. . . . While securities firms are reducing head counts overall, they are still hiring in the legal and compliance areas," the report said.

Nationwide, 11 of the 12 Fed districts said economic activity had increased moderately in the past six weeks. St. Louis reported weakness.