September 15, 1971
There has been a favorable reaction among businessmen and bankers in the District to the President's program, and it is hoped that some sort of controls will be continued at the end of the freeze. There appears to be an anticipation of increased consumer confidence that will eventually increase consumer spending, but there is skepticism about the overall effectiveness of wage and price controls in Phase Two unless wage increases can be effectively controlled. Agriculture and tourism are bright spots in the region's economic outlook. Construction is showing evidence of strength in some areas and overbuilding in others.
Residential construction continues to pace the economic recovery in the Southeast. Activity is particularly strong in much of Florida. Large condominium projects have been announced for the Jacksonville and Ocala areas. A retirement community and a city for 7,000 have been announced for central Florida. A large condominium is also being constructed in the Nashville area.
Nonresidential construction is highlighted by the start-up of work on the Louisiana domed stadium. This project, it is hoped, will revitalize the New Orleans economy. Two bridges are to be built along the Gulf Coast in north Florida. Plans for two nuclear generating plants have been announced. One is to be built in Tennessee and the other in Georgia. A new convention center is planned for the Orlando area. Ground will be broken in the fall on a $100 million office park and distribution center located in the Miami area. However, there is also evidence of overexpansion, at least in the Atlanta area. It has been reported that nearly 25 percent of the space in Atlanta office parks is vacant and that total available space is expected to increase by more than one third by next summer. The market for apartments and warehouses in the Atlanta area has also been saturated. The vacancy rate for apartments and unused warehouse space is rising rapidly. With construction still under way, it may take several years for demand to catch up with supply.
The agriculture outlook is very promising. Tobacco farmers are benefiting from large crops and firm prices. Cotton, corn, soybean, peanut, and sugar cane crops are all expected to be good to excellent. The movement of frozen orange concentrate is holding up extremely well.
The recreation and tourist industries are enjoying prosperous conditions and prospects are good. Disney World will open on October 1, and the estimated first-year attendance has been increased to 11 million. Employment at this project will total about 6,500. Moreover, land prices around the project continued to advance. Disney Enterprises have reportedly purchased a large tract of land along the Atlantic Ocean for development as a beach resort. Most major resort areas in the District report a good summer season. Hotel and motel occupancy on Florida's Gold Coast is running well ahead of last year. Auto racing events are having a favorable impact on income in central Alabama. Attendance at the annual Walking Horse Celebration in Shelbyville, Tennessee, increased to 120,000 this year.
The depressed airline industry in the Miami area is reportedly bottoming out and headed for improvement. A textile mill that recently closed in Alabama may be reopened by another firm. Plant announcements include a conveying equipment plant in Mississippi, a stove manufacturing plant in Georgia, and a plant to manufacture campers in Tennessee.
The retail sales outlook is mixed. An improvement in consumer sentiment is reported in some areas, but no substantial or widespread pickup in consumer spending is reported.