6th District - Atlanta

Regional Federal Reserve Banks

Sixth District business contacts indicated that overall economic activity weakened from June through mid-July. Building contractors indicated that commercial development remained weak and most industrial contacts reported that production and volume of shipments were down from a year earlier. Banking contacts reported that credit availability remained tight. Labor markets remained weak. Further price increases were noted in energy, metals, and agricultural commodities. View full report.

Real Estate

Most District commercial contractors continued to note declines in construction activity on a year-over-year basis. Weakness remained most pronounced in Florida. Retail development slowed significantly, while vacancy rates among all commercial property types rose in most parts of the District. Overall, commercial contractors anticipate further softening through the remainder of the year and a weak 2009.

Manufacturing and Transportation

Regional rail activity was down in June compared with a year earlier as shipments of automotive and construction materials continued to drop, offsetting gains in coal, minerals, and farm products.

Banking and Finance

Some creditors noted that while there has generally been less willingness on the part of banks to finance construction projects, there has also been an increase in competition for commercial customers that have a solid credit history.

Employment and Prices

More firms noted a reduction in hours and/or employment levels in June and early July than was noted in previous reports. However, the persistent shortage of certain types of skilled labor continued.