Fed: New England economy has soft spots, but strong overall
Economic conditions softened a bit in New England over the past six weeks but remained solid overall, the Federal Reserve reported.
In its periodic survey of business conditions, both regionally and across the nation, the Fed found New England's technology and software sector doing particularly well, with firms reporting double-digit growth in revenues from the previous year. Tech firms are hiring aggressively and boosting wages in what is becoming an increasingly tight labor market. Wages for some highly skilled jobs are up as much as 15 percent, according to the the Fed.
Most retailers and manufacturers reported increases in sales and revenues, while commercial real estate continues to improve. Office vacancy rates slipped, and investment in commerical real estate rose. On the other hand, the slowing housing market appears to be creating some drag. For example, a lumber and home improvement store reported same-store sales falling nearly 20 percent from a year ago, according to the Fed.
The Fed publishes the Beige Book eight times a year, compiling anecdotal information from businesses in anticipation of meetings in which policy makers consider interest rates. The next rate-setting meeting is Sept. 20. In August, policy makers held benchmark rate steady at 5.25 percent, after 17 consecutive quarter-point rate increases.
