Dallas San Francisco Full report The pace of economic growth in the Second District has picked up since the last report. Most retailers report that sales continued to run ahead of plan in May, led by home-related goods. Single-family housing markets in and around New York City tightened further, while New Jersey's remodeling boom has continued unabated. Office rents in Manhattan rose again at a brisk pace in April, while vacancy rates held steady at a low level. Regional purchasing managers report that manufacturing growth rebounded in May, following a brief pause in April, while input prices were flat to slightly lower.
Tourism remains brisk in New York City and appears to be picking up in western New York State.
Finally, local banks report further declines in consumer delinquency rates and continued moderate growth in loan demand. Consumer Spending Most major retailers report that sales in the region were above plan in May, led by home-related goods. General merchandise retailers report that same-store sales were flat to up 6 percent, while discounters generally experienced stronger gains. However, apparel sales were mixed, with a number of retailers reporting some weakness in children's and infants' clothing, as well as accessories and cosmetics. Retail inventories are generally reported to be at satisfactory levels, although one contact notes lean stocks of apparel and various seasonal merchandise.