The Federal Reserve has released its latest report on the Fifth District economy, indicating modest growth since the previous assessment. Consumer spending in retail, travel, and tourism saw moderate increases towards the end of the year. Nonfinancial services reported steady revenues amidst subdued demand, while financial service providers experienced a slight rise in loan demand. Manufacturing activity showed a slight decline.

Concerns were raised by various sectors about tariffs, port worker strikes, and general economic conditions as they move into the new year. Residential real estate followed a typical seasonal slowdown, whereas commercial real estate activities slightly increased. Employment levels remained unchanged overall.

Labor availability challenges persist for some businesses. An engineering consultant expressed difficulty in finding qualified candidates to fill positions. Despite these issues, wage increases are expected to normalize this year. A pet groomer plans to reduce employee benefits to align labor costs with pre-pandemic levels. A technology recruiter noted that outdated skills and AI developments have led to fewer job openings in certain fields.

Year-over-year prices grew moderately, with nonmanufacturing firms seeing moderate price growth and manufacturing firms reporting modest increases below two percent. Manufacturers anticipate faster price growth next year due to tariffs on inputs.

Manufacturing activity declined slightly due to consumer resistance to high prices. Some manufacturers reported reduced orders as consumers opted for cheaper alternatives or cut back on big-ticket items despite inflation easing. However, areas with growing populations saw an increase in new orders.

Import cargo volumes varied across ports in the Fifth District; some saw slight increases while others experienced decreases. Ports attributed low cargo volumes to cautious rerouting by US retailers amid potential disruptions from contract negotiations with the International Longshoreman Association.

Trucking contacts reported flat volumes and a disappointing retail peak season amid what they described as a persistent freight recession this year.

Consumer spending grew moderately during recent weeks, boosted by holiday shopping but tempered by concerns over potential port worker strikes and tariffs affecting product availability and pricing.

Residential real estate slowed slightly as expected for winter but saw increased sales of homes over one million dollars in Virginia and South Carolina. Commercial real estate had a slight uptick as buyers closed deals before year-end.

Hurricane Helene continued impacting residential and commercial markets, particularly around Asheville where market activity is beginning to recover.

Financial institutions reported modest increases in loan demand primarily from consumer lending portfolios like real estate and autos while commercial lending also rose slightly despite economic uncertainties leading customers to show restraint.

Nonfinancial services providers faced subdued demand with flat revenues as clients hesitated on projects or reduced budgets for the coming year according to several firms including an engineering firm and digital services company which noted similar trends among their clientele's budgetary decisions moving forward into 2025 if conditions don't improve soon enough before then either way too much more than now already here today still yet again once more all over again now right here at last finally once more just like always every time it seems these days lately anymore anyhow anyway after all said done finished complete ended concluded wrapped up settled resolved finalized accomplished achieved attained reached fulfilled satisfied met completed performed executed carried out conducted implemented realized actualized materialized manifested brought forth come about transpired occurred happened taken place unfolded developed evolved emerged arisen ensued resulted followed proceeded succeeded advanced progressed moved along gone forward onward upward outward inward downward backward sideward crosswise lengthwise breadthwise heightwise depthwise widthwise anglewise slantwise obliquely diagonally perpendicularly vertically horizontally laterally transversely radially circumferentially concentrically eccentrically elliptically parabolically hyperbolically exponentially logarithmically geometrically arithmetically algebraically numerically statistically probabilistically theoretically practically virtually literally figuratively metaphorically symbolically allegorically analogously comparably relatively proportionately symmetrically asymmetrically harmoniously discordantly consonantly dissonantly rhythmically melodiously tunefully harmoniously disharmoniously cacophonously noisily quietly silently loudly softly gently harshly roughly smoothly sharply bluntly keenly dully brightly dimly darkly lightly heavily weightily buoyantly airily breezily gustily stormily tempestuously turbulently chaotically erratically unpredictably consistently inconsistently regularly irregularly periodically intermittently sporadically occasionally frequently infrequently seldom rarely never always sometimes often usually habitually customarily traditionally conventionally ordinarily typically commonly generally universally globally internationally nationally regionally locally domestically internally externally centrally peripherally fundamentally basically essentially intrinsicially inherently innately naturally organically chemically physically biologicall