Regional Matters
These posts examine local, regional and national data that matter to the Fifth District economy and our communities.
The Richmond Fed business surveys, like other surveys, find that firms are facing tightened credit conditions. However, most surveyed firms, regardless of size, have not needed to seek new credit.
Since the second half of 2022, we have observed firms increasingly pulling back on capital expenditures. This post explores the recent declines in capital investment using data from The CFO Survey and the Richmond Fed monthly business surveys.
Fifth District firms have experienced faster price growth since 2021. Increased uncertainty coincided with firms adjusting their own prices more frequently than before the COVID-19 pandemic.
February's monthly business surveys show that businesses, for the most part, are optimistic about their firms' prospects but less optimistic about the U.S. economy.
Following two years of tight housing market conditions in the Fifth District, indicators suggest that markets are cooling although affordability remains an issue.
$440 million in competitive economic development grants from the 2021 American Rescue Plan Act have arrived in the Fifth District where the funds are expected to have an outsized impact in rural areas.
Results from a recent national Fed survey show that community development financial institutions (CDFIs) and the communities they serve are facing less severe disruptions than last year. Still, staffing and other challenges are preventing CDFIs from fully meeting growing demand for their products and services.
Hispanic postsecondary enrollment has nearly doubled in the Fifth District over the past decade, contributing to increased diversity across college campuses. Organizations work to engage Hispanic youth throughout the college application and attendance process to ensure their success as college students.
While more than a third of businesses expect to expand their workforce in the coming year, some firms have started to reduce headcount by not replacing outgoing workers. Most businesses would take that approach, or keep employment steady, if demand softened in the near future.
Our Fifth District business surveys indicate that firms are paying more attention to inflation as they make price- and wage-setting decisions. But businesses also expect own-price growth and inflation to moderate in the near future.