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US economic activity "deteriorated further" through February, dampening prospects for a quick recovery from recession, the Federal Reserve said in its Beige Book report Wednesday.
The report, to be used at the upcoming meeting of Fed policymakers March 17-18, said the troubles were broad-based, citing weak consumer spending, tight credit and further declines in the factory sector.
"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 report said.
The Beige Book said consumer spending, a key driver of the economy, "remained sluggish on net, although many districts noted some improvement in January and February compared with a dismal holiday spending season."
It cited declines in travel and tourist activity and "a wide range" of services, amid "substantial job cuts."
