From CNN Money:

“Overall economic activity weakened across all Federal Reserve districts,” the Fed said Wednesday in the December edition of its Beige Book, a report on current economic conditions.

While the weakness was widespread, the St. Louis district, which encompasses Littlerock, Ark., Louisville, Ky. and Memphis, Tenn., showed slight improvements in commercial real estate and labor.

Among the main drivers were a deterioration in vehicle sales, weak consumer spending, further contraction of lending and a noticeable decline in manufacturing activity.

The report said retailers are preparing for a “relatively slow holiday sales season,” as consumers shy away from big-ticket purchases amid the weak economy.

Falling home prices took a toll on real estate markets in most districts. But weak home sales remained at stable levels, according to the report.

Credit conditions remain tight, with several districts reporting increases in loan delinquencies and defaults, “especially in the real estate sector,” the report said.

Commercial real estate weakened broadly, worsening from declines reported in October’s Beige Book. Half of the 12 districts indicated that commercial real estate projects were being postponed or canceled, citing tight credit conditions.

Labor market conditions remained weak, with nearly half of the districts reporting current and future layoffs.

JUst thought you would like to know the truth….just in case your on air person is still painting a rosy pic of the economy.