The Southeastern economy continues to expand moderately in midwinter, according to most contacts. Merchants report satisfactory sales and inventory accumulations, but they are cautious regarding spring sales and anticipate only marginal increases from a year ago. Contacts report increasing manufacturing activity for most sectors, although weakness persists for some apparel and textile producers. Tourism and convention activity continues at high rates, and officials report strong spring bookings. Reports on single-family home sales remain mixed, while commercial real estate markets are improving, and new development is accelerating.
Bankers note moderate loan demand with quality improvements reported throughout the District.
Although low unemployment rates in parts of the District are making it difficult for some employers to find qualified workers, wage increases have been relatively stable, according to most contacts. A late January freeze damaged crops in Florida, but the citrus crop was mostly spared. The majority of retailers reported that recent sales have met their expectations, and that inventories are on target. Looking forward to spring sales, most retailers remain cautious, anticipating only slight increases over last year. Construction was generally flat.