San Francisco Full report Southeastern economic activity expanded moderately in early spring, and contacts are mostly optimistic about future prospects. Residential sales and construction have slowed in most markets, but commercial construction has picked up. Although overall factory output has been soft recently, new contracts are aiding some producers. Loan demand remains strong throughout the District except for housing, and the outlook for the tourism sector remains positive. Labor costs are still under pressure because of continued labor scarcity throughout the District.
Contacts report increasing prices for a number of commodities and services.
According to District retailers, a late Easter this year diminished March sales and shifted purchases into April. Most retailers opined that in early April sales were up slightly compared with a year ago, and recent sales have met or exceeded expectations. Inventories are balanced. Children's apparel, cosmetics and shoes are selling well, while men's apparel sales have been weak. Construction Reports from builders around the District indicate that single-family construction activity in March and early April varied considerably from market to market compared with a year ago.