Labor turnover is high. Some firms are hoarding fuel. Paper, synthetic fibers, and chemicals are especially strong. Electrical components are in short supply. Phase IV is criticized.
Retail sales remain strong.
Nonresidential construction has been maintained. Volvo will locate a plant in Virginia. Only residential construction is down. Shortages have delayed construction projects. Industrial projects are being pushed in various parts of the South, and Japanese and European manufacturers are evaluating sites for new plants in the region.