The Southeastern economy continues to expand moderately in early spring, according to most contacts. Factory activity has been mixed, with increasing payrolls, despite declines in orders reported by several manufacturing firms in the region. The outlook is positive in the tourism and hospitality sectors as the expansion continues in the travel industry. Most retail merchants report that April sales were above last year's, with levels meeting expectations.
Bankers note moderating loan demand.
Single-family home sales and construction were generally flat, but commercial construction markets are displaying continued strength. Despite difficulties in hiring and retaining qualified workers and some reports of higher input costs, wage and price pressures remain relatively subdued. Consumer Spending Most District merchants reported April sales above those of a year ago, with levels meeting expectations. Generally, they indicate inventory accumulations are currently on target, and the outlook for future sales of most product lines is upbeat. High consumer confidence has helped to keep sales strong, according to some contacts.