South By North Strategies, Ltd.

Service Activity In The South Atlantic: May 2012

From the Federal Reserve Bank of Richmond’s latest survey of service-sector activity in the South Atlantic (District of Columbia, Maryland, North Carolina, South Carolina, Virginia and West Virginia):

Service sector activity remained generally soft in May, although employment picked up, according to the latest survey by the Federal Reserve Bank of Richmond. Retail sales performance was subdued, with big-ticket sales in decline and shopper traffic unchanged from a month ago. Retail inventories were little changed. Revenues were also lackluster at non-retail services firms this month. Looking ahead six months, retailers expected sales to remain weak, while services providers anticipated stronger customer demand.
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On the jobs front, hiring rose, with the majority of the growth occurring at non-retail firms. Average wages also made solid headway at services providers, driving up the wage indicator for the broad service sector.
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The pace of price change slowed overall in May compared to a month ago. Survey participants expected a faster rate of increase during the next six months.

Around The Dial – June 11, 2012

Economic policy reports, blog postings, and media stories of interest:

• Christina Romer calls on the Federal Reserve to act.
• The Progressive Pulse graphs changes in Medicaid funding in North Carolina.
• McClatchy Newspapers reports on the extent of “wage theft” by employers.
• Jared Bernstein discusses the importance of the minimum wage.
• Naked Capitalism compares joblessness in five kinds of communities.

Falling Funding For Community Colleges

The North Carolina Budget & Tax Center graphs the troubling decline in funding for community colleges despite rising enrollments.

Manufacturing In The South Atlantic: May 2012

From the Federal Reserve Bank of Richmond’s latest 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 expanded in May for the sixth consecutive month but at a more moderate pace than a month ago, according to the Richmond Fed’s latest survey. Looking at the main components of activity, shipments held steady and employment grew at a faster rate, while new orders grew at a rate well below April’s pace. Most other indicators also suggested a slowdown in growth. District contacts reported that backlogs turned negative and capacity utilization grew more slowly. Vendor lead-time grew at a slower rate, while raw materials inventories grew at a quicker pace.
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In spite of the recent moderation in activity, assessments for business activity over the next six months remained generally positive since our last report. Contacts at more firms anticipated that shipments, new orders, backlogs, capacity utilization, and capital expenditures would continue to grow at a solid pace.

Around The Dial – June 1, 2012

Economic policy reports, blog postings, and media stories of interest:

• Martin Wolf mulls possible ends to the Eurocrisis.
• The Huffington Post reports on the rise of unpaid overtime.
• The Washington Post sees  a scant job recovery for working-age people.
• Paul Krugman bemoans “the austerity agenda.”