The Fed’s periodic Beige Book economic survey, based on reports from late November to early January by regional Fed banks, showed mostly "modest" or "moderate" growth in each of the 12 Fed districts surveyed. One of the exceptions was the New York City district, which along with Kansas City reported “essentially flat” economic activity.
One problem in New York was that retailers reported a sluggish holiday season, with spending flat to down moderately from 2014 levels. New York was also one of two districts that reported upward wage pressures.
But the particular weakness in New York City was attributed to weak tourism spending. Tourism activity, which had been fairly sluggish in the prior report, weakened even further. Revenue at New York hotels and Broadway theaters were down noticeably from a year earlier, particularly over the holiday season.