Although one local businesswoman predicts an eventual downturn in economic activity in the area, the country's recession has only slightly hurt downtown businesses.

"It will definitely affect any business; it will affect the entire country. I think all businesses will find it harder to get by, but many will get more creative and find different ways to do business," said Marie Librizzi, president of the Downtown Business Association.

However, Librizzi said the Centre County region tends to remain more economically stable than other parts of the country when the economy slows.

William D. Anderson, business analyst for the Smeal College of Business Administration, has watched the downtown economic situation for almost six years.

"Historically, the State College area tends to hold up relatively well, but that doesn't mean that it won't be impacted. When there is a downturn, (this area) doesn't appear to turn down as much.

"Economic growth has slowed considerably, but I don't think (the area is) in a recession," Anderson said.

Some owners of local retail clothing and variety stores have changed their sales practices because of the recession.

"We've had to turn down some (employees) hours. Sales were down this past month, so we (have to) take small measures," said John Marsden, manager of Lions Pride, 112 E. College Ave.

Marsden added he began his February sale early to prevent loss.

Another owner said customers are not buying as much as usual.

"I don't think people are as willing to spend. They get what they need, not what they want," manager John Kelley said of the decline in sales at G. C. Murphy, 127 S. Allen St.

Nancy Herman, owner of Mode, 123 S. Allen St., said she decided to run her sale early to compete with other businesses.

She added the Persian Gulf war has affected her business more than the recession.

"The week of Jan. 15 we saw a real slowdown; the streets were deserted . . . but now we're getting back to normal," Herman said.

Local restaurant owners said their businesses have not been heavily affected by the recession.

Reginald Evers, general manager of Baby's, 131 S. Garner St., said his restuarant's sales are not down from last year.

"Overall, I don't think (the recession) has hit . . . it hasn't affected my sales," Evers said.

Andy Zangrilli, owner of the Deli, 113 Heister St., agreed.

"(This business) traditionally has been different than the economy on a whole . . . People still tend to treat themselves," he said.

Judy Cocolin, owner of the Gingerbread Man, 130 Heister St., said she may have to raise prices in the future, not only to curb the effects of the recession, but to pay the higher liquor tax.

Al Pettina, assistant manager of the State Liquor Store at 1688 N. Atherton St., said the federal tax was enacted on Jan. 1 to reduce the federal budget deficit. The price of liquor has increased in proportion to the liquor's proof.

"A hundred-proof vodka will go up more than an 80-proof vodka," Pettina said. An economics professor agreed that the State College area will not be hit as hard as the rest of the nation.

"(The area) is a lot different. The downtown caters to the University. (The recession) will have to get worse before it affects the downtown," said Thomas G. Fox, professor of economics.

He said expansion to the Nittany Mall, Benner Pike in College Township, and the opening of Wal-Mart, 1665 N. Atherton St., may affect downtown business practices.

Librizzi said businesses that belong to a larger chain are likely to close during a recession.

"When the larger chains tend to tighten their belts, they close stores in areas that are doing the least business," she said.

Librizzi said downtown businesses will rise above the recession because of their creative sales tecniques.

"The downtown businesses are typically a solid group and can be creative,"she said.