PROVIDENCE – Economic activity in New England continued to expanded from mid-January to early March, according to the Federal Reserve’s Beige Book released on Wednesday.
The report is a reflection of Federal Reserve contacts around the country on the state of the local and United States economies.
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Prices in the region were said to have remained unchanged or increased moderately. Labor markets in the area remained tight, pushing up labor costs. The region also saw some states with minimum wage hikes, increasing labor costs in those areas.
Manufacturers in the region reported mostly positive results, with seven of 10 respondents reporting year-over-year growth. A textile manufacturer reported flat sales and two firms in advanced sensors and chemicals reported a decline – attributable to disruptions related to uncertainty and supply-chain challenges due to the coronavirus 2019.
The commercial real estate industry in the region reported mixed performance. In the Greater Providence area, office leasing slowed. However, Rhode Island industrial property values were noted to have increased 40% over the past two years due to robust demand and scarce inventory.
In the residential real estate market, the entire New England market was said to have reported double-digit increases in closed single-family home and condominium sales. Median sales were said to have generally increased as well. Inventory in the region significantly dropped and respondents in the field expressed optimism going forward.
Retail respondents in New England reported comparable same-store sales year over year. Consumer sentiment in the region also remained strong.
Staffing firms in the region were said to have ended the 2019 year on a strong note. Most contacts in the field cited a steady and healthy demand for labor, which continued to outweigh supply.
New England’s economic expansion was similar to the national trend. Most districts were said to have expanded at a modest to moderate pace. Only the Federal Reserve of St. Louis and Kansas City districts did not report continued growth in the Beige Book period.
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
