PROVIDENCE – The New England economy experienced moderate growth in March and early April, according to the Federal Reserve Beige Book released Wednesday, but respondents reported some slowing in manufacturing in the region.
Wage increases in the region were described as moderate, growing roughly 3% to 5% over the year. The report noted that hiring by manufacturers and retailers in the region remained “muted,” but reported that software and IT service firms hiring expanded steadily.
Respondents in the region reported a tight labor market, yet manufacturers did not indicate trouble with wage pressures.
Prices in the region were stable or rose moderately, according to the report. Manufacturers said that tariffs were driving up prices, however. Those affected by tariffs said that they were mostly able to pass increased costs to buyers, some even keeping higher prices after tariffs were removed.
In the retail sector in the region, same-store sales increased in the low to mid-single digits year over year. Automobile sales declined year over year.
Manufacturing respondents reported mixed performance results. A major toy manufacturer in the region also reported that the closure of a major toy store chain continued to impact results.
Industrial property values in Rhode Island, along with industrial rents, were said to increase noticeably over the past year amid strong demand and tight supply. The report noted that the market was restricted by low inventories.
The report said that the Providence commercial real estate market has seen rising vacancies in the class A office market recently, which is expected to blunt or halt the growth of office rents there.
Residential homes sales decline moderately in Rhode Island year over year. Condominium sales in the Ocean State were reported to have increased while the median price of a condo declined.
In a summary of the New England bank district, the report said “Aside from manufacturers, outlooks remained positive.”
Nationally, economic activity was said to have expanded at a slight-to-moderate pace in March and early April, with increasing employment, particularly in high-skilled jobs. The national job market remained tight and has led to continued wage pressures.
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
