PROVIDENCE – Economic activity in New England continued to decline into May, according to the Federal Reserve’s Beige Book published Wednesday.
The survey of local businesses and organizations reflects business activity from April through May 18.
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Employment and wages in the region were said to be down generally among all contacts. Eight out of 10 surveyed manufacturers in the region said they had frozen or largely frozen hiring; however, headcount was said to be largely the same as pre-pandemic levels.
Manufacturers in the region reported a range of experiences with the pandemic, some with increased sales. Nearly all respondents in the region have remained open throughout the crisis.
Retail and tourism in the region was said to have experienced major disruptions. Travel industry contacts in the area reported a 65% decline in hotel occupancy in New England.
Staffing firms said that demand and placement activity has slowed compared with pre-pandemic levels.
Commercial real estate in the region was also reported to have come to a halt in March. Only a few time-sensitive transactions or leases were said to have occurred in Boston, Providence and Hartford. Most office tenants in the region were reported as being able to pay rents, while retailers struggled. Respondents said that collection of May rent was expected to be more difficult, with some landlords considering payment relief measures.
The residential real estate market in the region was also said to have slowed. Rhode Island experienced double-digit drop in pending sales, the report noted. The region was said to have remained a seller’s market.
The New England economic decline was largely in line with national trends following COVID-19 related shutdowns.
