District manufacturers indicate that production has recently weakened slightly, while their outlook has improved somewhat. Reports on tourism within the region remain overwhelmingly positive. Real estate contacts report that home sales and construction activity slowed in October. However, the single-family market continues to operate at a healthy level, and commercial real estate markets continue to improve throughout the District, with falling vacancy rates and robust levels of construction in many areas. Overall loan demand is characterized as moderate.
Labor shortages persist in many areas of the District, but wage pressures reportedly remain subdued.
According to District retailers, sales in October and early November exceeded year-ago levels. More than half of the retailers contacted said that recent sales had met their expectations, and most retailers report that inventories are on target. Apparel, cosmetics, shoes, and home-related products are among the top sellers within the region. Looking toward holiday sales, most retailers anticipate a slight increase over last year, while the remainder expect a more significant increase. Since the last Beige Book, an increasing number of factories are reporting decreasing production and shipments.