The Tri-state area”™s economy expanded at a modest pace this summer, according to the Federal Reserve Bank of New York”™s latest “Beige Book” informal survey, though there were scattered signs of softening in the labor market as some industries scaled back hiring.
Retailers, however, had generally favorable results, with auto dealers reporting fairly strong sales to the Fed, and tourism was bustling, with attendance at Broadway theaters running about 5 percent ahead of a year earlier.
Small- and mid-sized banks in the area report a noticeable pickup in demand for residential and commercial mortgages, though commercial and industrial loans decreased. Bankers also reported declining delinquency rates, particularly on commercial and industrial loans and residential mortgages.
Manhattan’s office market strengthened somewhat in July, as leasing activity picked up and vacancy rates edged down. A major New York City employment agency specializing in office jobs, however, reported that hiring activity was even more sluggish in July and early August than is usual for the this time of year. Additionally, a contact in the securities industry told the Fed there has been neither any significant increase in layoffs nor much hiring.
