Regional Economies
Summaries of economic conditions in the 12 Federal Reserve System districts, based on a survey completed June 12 by the regional Fed banks.
1) BOSTON: Activity continues to expand, although signs of a slowdown are apparent. New England retailers are slightly more upbeat than they were six weeks ago. Manufacturing contacts report ongoing year-over-year gains in sales.
2) NEW YORK: Conditions remain mixed but somewhat more positive. Retail sales were significantly stronger in May. Output of small manufacturing firms remains strong. But in the Buffalo and New York areas, production has declined. Manhattan’s commercial real estate market has weakened considerably.
3) PHILADELPHIA: Activity shows signs of slowing. Manufacturers continued to report declining demand for their products and said they are scaling back production.
4) CLEVELAND: The growth rate of business activity has slowed, with many industries indicating production levels approximately even with the first quarter. Farmers are expecting excellent harvests, and some downward pressure on crop prices has occurred.
5) RICHMOND: The rate of expansion appears to have decreased. Retailers, service producers and manufacturers reported that growth has dropped off. Area ports and the tourism industry reported a greater level of activity.
6) ATLANTA: Growth continues unevenly, with some sectors continuing to slow and others rebounding. Retailers generally reported that sales have increased and the status of inventories is good. Most manufacturers reported little change in production.
7) CHICAGO: Conditions are improving as consumer spending has strengthened and price pressures have eased in manufacturing. Lower mortgage rates have yet to spark a widespread rebound in home sales and construction.
8) ST. LOUIS: The economy is growing at a slower pace. Residential construction continues to slow, but commercial building has increased. Record rainfall produced severe flooding, affecting thousands of acres of farmland and delaying spring planting.
9) MINNEAPOLIS: The economy shows few signs of slackening. Manufacturing is strong. Oil drilling is experiencing a resurgence, mines are looking for ways to expand output, and paper mills are running at full capacity. The construction sector is robust.
10) KANSAS CITY: The economy has grown at a moderate pace. Retail activity has improved in most parts of the region. Manufacturing remains generally strong, although some signs of slowing have emerged. Home-building activity has eased slightly.
11) DALLAS: Growth may be slowing. Manufacturing orders remain at high levels, but some industries said demand has moderated. Retailers reported a slight pickup in sales, but sales were weak at stores along the Texas-Mexico border.
12) SAN FRANCISCO: The pace of growth slowed. Retail sales were sluggish, especially for autos. Single-family housing construction was below 1994 levels in most areas. Manufacturers of building materials reported declines. But manufacturers of metals and electronics said demand was strong. Tourism also showed strength. Farm exports generally were strong, despite sluggish sales to Mexico. Loan growth has picked up.
