The District economy is still growing at a moderate pace. District firms continue to report growth in sales and employment, though tight labor markets persist in many parts of the District.
Contacts are generally optimistic about near-term economic conditions.
May. Total loans outstanding at large District banks rose slightly during the past two months, with commercial and industrial lending posting the largest increase. Manufacturing and Other Business Activity District contacts continue to report that favorable economic conditions are allowing them to increase sales and employment, though tight labor markets still plague many parts of the District. In addition, many firms are still having trouble finding and retaining qualified entry-level workers. Still, most contacts have not reported added upward wage pressure in the face of ongoing labor market tightness. The District's furniture industry got a boost when a manufacturer decided to consolidate two of its plants into an Arkansas plant, bringing about 900 new jobs.