Fed’s Issues Business Projections for New England

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Tuesday, February 14, 2012

Greg Berman, GoLocal News Contributor

The Federal Reserve has released its assessment of the nation’s business climate, and New England is reporting mixed results. According to the report, New England’s retail and residential real estate sectors have been lagging, while its tourism and information technology sectors have shown steady growth.

Retailers have reported relatively stable sales since last year—with some businesses reporting sales down by as much as 5 percent, but others up by nearly 4 percent. Consumer behavior, on the whole, was reported to be timid, especially in regards to larger purchases—which is not surprising given the current fragile state of the economy. Some businesses reported to be hiring, but most have been hesitant to add new employees.

Inconsistent

Businesses conditions have been similarly inconsistent in the manufacturing sector, where many companies are reporting lessened demand, while others—specifically pharmaceutical and industrial supply companies—have maintained steady growth. Many manufacturers reported having the ability to make new investments, but most were hesitant to do so given the current economic climate.

Travel and tourism in the region, on the other hand, has done well—continuing on the same upward trajectory it has been on for over a year. Predictably, tourism activity slowed down during the latter part of the summer. Despite the strong performance, the outlook for the rest of the year is uncertain—with respondents doubting the previously forecasted 5 percent growth estimate. 

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