From the Federal Reserve Bank of Richmond’s January survey of manufacturing activity in the South Atlantic (District of Columbia, Maryland, North Carolina, South Carolina, Virginia and West Virginia):
Manufacturing activity in the central Atlantic region advanced somewhat faster in March than a month earlier, according to the Richmond Fed’s latest survey. Looking at the main components of activity, shipments grew at a modest pace, while new orders were virtually unchanged and employment steadied. Other indicators were mixed. Backlogs of orders landed in negative territory and capacity utilization turned positive after being negative for the last three months. Vendor delivery times grew at a considerably quicker rate, while manufacturers reported somewhat slower growth in finished goods inventories.
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Looking forward, manufacturers’ optimism remained in place in March. Firms looked for steady growth in shipments, new orders, backlogs and capacity utilization in the months ahead, while they expected employment to grow moderately and reverse its negative reading that was seen last month.
From the Federal Reserve Bank of Richmond’s January survey of service-sector activity in the South Atlantic (District of Columbia, Maryland, North Carolina, South Carolina, Virginia and West Virginia):
Fifth District service sector activity strengthened in March, according to the latest survey by the Federal Reserve Bank of Richmond. Retail sales expanded and inventories decreased. In addition, the drop in big-ticket sales abated this month. Shopper traffic continued to slump, however. At non-retail services firms, revenues fell, but the decline was less pervasive than in recent months. Price change in the broad service sector was nearly the same as a month ago.
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In labor markets, job cuts subsided at retail businesses and the number of employees was unchanged at services firms. Average wages in the overall service sector ticked higher in March.
But the reality for most Americans is becoming more complicated. The recession came at the end of a period marked by record levels of inequality. Many Americans, lacking true upward mobility, bought its trappings, such as a bigger house or better car. Disaster duly followed. As a result, American optimism has been pierced by doubt. In a new poll for The Economist, 36% of respondents said they had less opportunity than their parents did, compared with 39% who thought they had more. Half thought the next generation would have a lower standard of living, double the share that thought living standards would rise. As the country recovers, two problems cloud its future. Rates of social mobility are unlikely to grow. Inequality, however, may widen even further.
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The recession, meanwhile, may have exacerbated trends in inequality. The capital markets, points out Timothy Smeeding of the University of Wisconsin, have recovered more quickly than the housing or labour markets. This is troubling for the poor and the middle class, since homes represent a greater share of their wealth. Unemployment has been concentrated in America’s lower ranks. As the rich recover, poor and middle-class people may lag behind. Young workers may fare badly, too. Those who graduate in recessions have lower incomes in the long term, according to Lisa Kahn of Yale University.
From the Council of Economic Advisers’ latest report on the American Recovery and Reinvestment Act …
The CEA’s third quarterly report on the impact of the American Recovery and Reinvestment Act (ARRA), released on April 14, 2010 (CEA 2010), found that the ARRA raised employment as of the first quarter of 2010 by between 2.2 million and 2.8 million jobs over what it would otherwise have been.
The following table estimates the number of jobs created or saved by state. Note that the estimate for North Carolina is 84,000 jobs.
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