WASHINGTON (MNI) – The following is the text of the Federal Reserve
Beige Book survey Fifth District summary, published Wednesday (part 2
of 2):

Tourism.

Tourist activity along the coast was either unchanged or up
slightly from a year ago, and mountain resorts reported generally
improving conditions. Contacts on the Outer Banks of North Carolina and
in Virginia Beach said that bookings over the Memorial Day weekend were
somewhat stronger when compared to earlier expectations. One contact
from the Outer Banks noted that attitudes were definitely improving.
Tourists were starting to eat out more and attending ticketed events
again. While an analyst in Myrtle Beach indicated that increased
promotion was attracting more visitors, spending levels continued to be
quite low. Managers at mountain resorts reported that holiday bookings
were somewhat stronger than last year. They attributed the increase in
reservations to people staying closer to home, which allowed tourists to
spend more at restaurants and events.

Labor Markets.

Fifth District labor markets remained soft, but temporary
employment agents cited recent gains. While several services firms
reported that hiring was picking up, job cuts continued at many retail
establishments. No change in the number of employees was noted in most
manufacturing industries, but several contacts reported cuts in weekly
production hours. A Raleigh contact at a temp agency reported seeing a
steady increase in demand for his clients, specifically in office
support positions where demand had been lagging in previous periods. One
respondent stated that temp employment among District auto- and
metals-related manufacturers improved recently. Most temp agency
contacts expected the demand for workers to continue to improve, citing
a recovering economy and higher manufacturing orders. Wage growth picked
up in retail and services businesses, but one executive said that
manufacturing wages had not increased since 2007 and he did not expect
them to change this year.

Agriculture.

Rainfall brought much needed relief and improved soil moisture to
most areas of the District, which helped revive pastures and field
crops. However, dry conditions and inconsistent weather took a toll on
crops and yield potential in other areas. For example, farmers expected
low rainfall to reduce winter wheat harvests in South Carolina. An
analyst in Virginia reported some fruit and vegetable damage due to near
frost-level temperatures. Also farmers expected lower yields of hay
because sporadic rainfall hampered production and curing. In Maryland,
however, hay supplies remained adequate and pasture conditions were
rated fair to good. In North and South Carolina, plantings of peanuts
and soybeans were well on their way, and farmers in Virginia were busy
planting sweet corn, cantaloupes, peppers and squash. The 2010 peach
harvest has just begun in South Carolina and conditions are favorable
for peach growers. Lastly, peach and apple conditions in West Virginia
ranged from fair to excellent, with most orchards in good condition.

(part 2 of 2)

** Market News International Washington Bureau: 202-371-2121 **

[TOPICS: M$$CR$,M$U$$$,MMUFE$,MGU$$$,MFU$$$]