Home sales and construction picked up till the end of the Home Buyers Tax Credit which expired on April 30th, and coincidentally in May these areas have been reported as slowing. Lower rents have pointed as a reason for increasing leasing activity in New York, Philadelphia, Richmond, Kansas City, Dallas, and San Francisco. One noteworthy extract is that some districts cited concerns over the potential impact of the European fiscal crises on financial and business conditions. These districts reported a corresponding increase in uncertainty and financial market volatility.
A look at Cleveland's report (since Cincinnati is a local branch) reveals that demand by business for new loans remains weak sauce. However, some bankers commented that the lending environment is starting to grow more competitive. This is generally consistent with yesterdays release of the Small Business Optimism Index . On a positive note, a large majority of the contacts reported that inventories are now well balanced which reflects increased demand. Furthermore, the number of respondents who plan on additional spending during the second half of 2010 has increased "substantially" since the last report.
For some Gulf oil spill action, the Atlanta Feds district said that contacts indicated the potential impact on the tourism industry along the coast line of Louisiana, Mississippi, Alabama, and western Florida could be substantial:
"In some cases, vacation lodging cancellations have been replaced by bookings for clean up crews, laborers, and the National Guard."