Economic activity expanded at a moderate pace in the New Orleans region over the past six weeks. According to a regional Fed report, labor markets improved and wage pressures picked up for some positions. Retail sales increased, while leisure, hospitality, and tourism activity strengthened.
Another likely “above normal” hurricane season is underway, and coastal state and local governments are especially vulnerable this year due to rising costs for materials and labor, as well as disrupted supply chains. A new report from Moody’s shows rising construction costs will make recovering from storms more costly.
The price of lumber and wood products is up 90% from a year ago, while steel-mill products are 67% higher versus April 2020. Meanwhile, supply-chain bottlenecks are lengthening delivery times. That will be problematic for areas that depend on tourism and require speedier rebuilding.
