Contacts report mostly slower growth for the southeastern economy since the previous Beige Book. Reports by manufacturing contacts, while mixed, indicate weakening since the last reporting period. Retail sales have been weak recently, falling below expectations for many merchants. Home sales and construction flattened, but commercial markets remain strong. The tourism and hospitality sector continues to post impressive numbers and industry spokesmen expect a strong summer season.
Bankers note strong overall loan demand.
Wage and price pressures are being held in check, according to most contacts, despite continuing reports of labor shortages. May. They expect second quarter sales will exceed last year's only slightly. While a significant minority said that current sales were weaker than expected, most contacts reported that inventories are currently on target. Product prices are not expected to change much over the next six months. Construction Single-family home sales and construction in the District have been flat since the last Beige Book.