In contrast, current booking figures suggest that 2001 will be a record year for large conventions in Atlanta. Financial Strong consumer and commercial loan demand continues to fuel overall growth in bank lending activity. Automobile loan demand slowed slightly, while residential mortgage demand remains flat. District bankers note that net interest rate compression and slower overall deposit growth have been offset somewhat by rising loan volumes and fees. Overall credit quality remains healthy.
Bankers expect loan growth to slow slightly through the remainder of the year.
Wages and Prices Tight labor markets and labor quality remain problems for many District employers, and increasing labor costs are widely perceived as major threats to profits. While the labor market appears to have eased slightly in certain areas, particularly for manufacturing and construction workers, there is continued intense demand pressures in the high-tech and medical sectors. In some cases, unplanned year-end bonuses are going to be offered to key employees in an attempt to maintain staffing levels. Increases in oil-related input costs and transportation fuel surcharges are widespread. The rising cost of healthcare and other insurance programs continues to be a concern for many employers.