Improvement in business conditions was "slow and steady" in the Ohio region in November and December, but most firms do not plan to add workers, according the Federal Reserve's "beige book" economic report, released Wednesday.

Manufacturers in the Cleveland District - which includes Ohio, western Pennsylvania, eastern Kentucky and West Virginia - reported production levels were up from a year ago. Retailers "reported less robust sales activity" than anticipated for the holidays, and department stores "continue to fare worse than other types of retailers."

Bankers said commercial loan demand was mixed, and consumer loan demand weakened as mortgage refinancings decline. Home construction remains strong, with many builders saying they expect a strong year.

John Byczkowski