The majority of retailers expect that second quarter sales will slightly exceed last year's level. Construction Reports from real estate contacts indicate that home sales in May were above last year's levels in most areas of the District. Most District builders continue to report that new home sales and construction are ahead of last year, if only slightly. Commercial real estate markets remain healthy throughout much of the region. The industrial market remains stable in most areas.
Retail markets remain healthy across much of the region.
Overall, both developers' and real estate agents' outlooks remain optimistic for the remainder of the year. Although more reports indicated that factory production has increased recently, more contacts than a month ago expect output and employment to weaken in coming months. Flagging new orders and plant shutdowns continue in the region's apparel sector. In Louisiana, bookings for onshore drilling and production equipment have decreased because the falloff in energy prices has forced independent energy extraction companies to cut back operations. Weak sales for its small cars has caused one large regional manufacturer to shorten its factory workweek, but continued strong demand for SUVs is boosting regional production of new utility vehicles and prompting some suppliers to expand.