Travel and Tourism[ articles activities | features | links ] Saturday, January 17, 2004 Report: Economic signs positive in regionBy AARON LONDON After a blistering third quarter in 2003, Federal Reserve Board staffers have found more positive economic signs in their first look at the economy in 2004.
In its first Beige Book report of the year – named for the color of its cover – Fed staff said reports from the 12 Federal Reserve districts “suggest that the nation’s economy has continued to improve since the last survey.” In the Sixth District, which includes Florida, early reports from retailers indicate strong holiday sales, with most contacts saying activity met or surpassed 2002 levels. “Contacts noted that the combination of lean inventories and strong sales resulted in fewer discounts than in recent years,” the report said. “In particular, less discounting was noted after Christmas.” Looking ahead to 2004, the report said retailers were generally “upbeat” about prospects for first-quarter sales. While residential housing markets ended the year strongly, commercial markets were mixed, the report said. “Commercial construction remained generally weak in November and December, while leasing activity continued to improve,” the report said. “Local industry analysts reported that improvements in the commercial real estate market were expected in 2004.” Manufacturing sectors also showed signs of recovery, the report said, with capital spending on the uptick particularly in information technology equipment. Tourism and travel also is gaining strength, according to the report. “The district’s tourism and hospitality industry continued to improve at year-end,” the report said. “In Miami, restaurants were said to be hiring aggressively and south and central Florida tourism officials were upbeat about the current tourist season.” Nationally, improvements in overall economic activity were matched by a modest improvement in labor markets. “These improvements took the form of reduced layoffs or modestly increased hiring, although new hiring was still quite minimal in several districts and most types of workers remained easy to recruit,” the report said. Overall inflation remained low throughout the nation, with manufacturers holding selling prices steady. The Federal Reserve will hold a two-day meeting on interest rates on Jan. 27 and 28. Most economists and analysts expect Fed policymakers to hold interest rates steady, with a possibility of rate increases sometime later in the year.
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