Thursday, May 06, 1999
Report: Region basks in glow of robust economy
But dark clouds lurk, Fed warns
BY JOHN J. BYCZKOWSKI
The Cincinnati Enquirer
The region's economy “continues to perform at a high level,” with manufacturing improving and construction gaining strength, according to the Federal Reserve's “beige book.”
The report said many things are going in the right direction for the region: Retailers have reported strong sales, demand for many manufactured goods is picking up, and favorable weather means farmers' crops are ahead of schedule.
A dark cloud, though, is continuing worker shortages. Nationally, the report noted some manufacturers are moving operations to find workers. In the Fed's Fourth District, made up of Ohio, eastern Kentucky and western Pennsylvania, many retailers are planning to expand, but “these plans may be hindered ... by a labor market that many see as very tight.”
Wages in the region may be creeping up. “District temporary employment agencies in dicate that a lack of workers continues to hamper their ability to meet demand, resulting in some added upward wage pressures,” the report said.
Construction activity is strong, but “worker shortages are being reported in the Pittsburgh and Cincinnati regions, with masons, roofers and framers in especially short supply. Some raw materials shortages, including drywall, lumber and concrete have been noted, and prices have edged up in these markets.”
The report didn't mention tornadoes that ripped through Greater Cincinnati last month, and their impact on construction and worker shortages.
Consumer loan activity at banks has hit a spring lull, and commercial lending is soft, the report said.
“Still, the spread between borrowing and lending rates remains narrow, and competition for borrowers is considered fierce by industry sources,” it said.
The report will help form the basis for discussion on interest rate targets at the May 18 meeting of the Fed's policy panel, the Federal Open Market Committee.
Cincinnati Bell gets ready for strike
Bell gets OK to operate in 55 counties
Tristate dollar goes a long way
Report: Region basks in glow of robust economy
P&G's Prell brand looking for a buyer
TRISTATE BUSINESS SUMMARY
INDUSTRY NOTES: REAL ESTATE
COMMERCIAL REAL ESTATE TRANSFERS
PEOPLE ON THE MOVE
TRISTATE MARKET SPOTLIGHT
