Although some firms will build up inventories later this year, many indicate that cost concerns will temper their hedging against potential Y2K-related disruptions. Most manufacturers expect their business to expand in coming months. However, they frequently mention risks or limits to growth, attributable in some cases to general economic factors and in other cases to industry-specific forces. The residential real estate market in New England is very active. Contacts report strong demand, with the number of sales rising in many places.
Several contacts cite supply shortages, and the number of listings is much lower than a year ago.
Activity in the Greater Boston area and southern New Hampshire is very strong. The number of 1999 sales in Massachusetts is higher than in the same period last year, with a record number of condominium sales. Contacts say prices in the Boston area have appreciated by 10 to 15 percent from a year ago. Southern Connecticut is also very strong and Fairfield County has reported a record number of sales this year. A contact in Hartford reports a small increase in sales of existing homes, but a significant increase in new construction.