General economic activity is expanding rapidly, and businessmen are optimistic about the near-term outlook. A pickup in planned commercial construction and plant and equipment outlays continues. Adverse weather conditions have caused severe damage to some crops and have hindered planting.

The outlook for commercial construction continues to improve. Still another huge project has been proposed for downtown Atlanta. The $150 million project would include high-rise residential and commercial buildings and a 1,000-room hotel. Other recent announcements include: a $70 million commercial and residential complex in Nashville; a $25 million residential and commercial complex in Macon, Georgia; a $12 million civic center in Huntsville; a $10 million office tower and parking garage complex in Chattanooga; a $10 million naval training complex in Meridian, Mississippi; a 25-story hotel in Nashville; a 14-story hotel in an Atlanta office park; a $4 million bank building in Montgomery; three new shopping centers in middle Tennessee; and two $1 million motels and a $1 million shopping center in east Alabama.

The growth of residential construction may be slowing, but activity is at a very high level. A $100 million planned unit development is slated for the Miami area. A $2.5 million apartment complex is planned for east Alabama, and a $2 million apartment complex is planned for Jackson, Mississippi. In spite of a 63 percent gain in residential building permits in the Jackson area in 1972, interest in constructing additional units in that area is still reported to be strong. A Louisiana businessman reports that factory production of building materials such as cement and brick are up, and that the demand for lumber is causing some producers to plan new mills and expand existing ones.

There continues to be a large number announcements of plans for new plants or expansions. The breadth of the recent announcements is indicated by the following list of projects: a new $50 million paper mill for north Alabama; $50 million in expansions of existing paper mills in north Alabama; an $18 million airplane maintenance facility in Atlanta; an $11 million plywood mill in north Alabama; a $10 million plywood plant in south Georgia; a $10 million soybean- processing plant in central Alabama; a $5 million expansion of a filter production plant in east Tennessee; a plant to make aluminum castings in Mobile, Alabama; a $4 million shipping container plant in Jackson; a $3.2 million expansion of an electrical equipment plant in Atlanta; a $2.3 million carpet finishing plant in north Georgia; and a $1.6 million plant that will manufacture components for automatic transmissions in central Alabama. A chemical firm has purchased an option to buy 1,500 acres on the Georgia coast as a site for a plant that would eventually employ 600. A vacant manufacturing facility in Alabama, purchased by a nationally known firm, will eventually employ 750 after conversion. Two companies are reportedly considering locating oil refineries in Lake Charles, Louisiana. Several large electrical generating plants have also been announced in the last month.

The strength of the district economy is reflected in state revenue collections. Florida sales tax collections in March were 16 percent above a year earlier, and Tennessee collections in the first three months of 1973 were 15 percent above a year ago. In the first ten months of fiscal 1973, Georgia's tax collections were running 14 percent above a year earlier.

Gasoline shortages have plagued independent retailers in Georgia; Sears stores in the Atlanta area have begun limiting sales to ten gallons per customer and have reduced the hours that pumps are open, The metropolitan Atlanta rapid transit authority has finally succeeded in obtaining a one-year fuel contract, but at increased cost. Fuel shortages are also reported to be responsible for reductions in fertilizer production.

Adverse weather conditions have caused severe damage to crops and hindered planting. Heavy rains and flooding severely reduced rice planting in Louisiana and will also reduce cotton, soybean, and sugarcane production in that state. Flood waters have also contaminated Gulf Coast oyster beds and forced the closing of hundreds of gas and oil wells, Weather conditions have destroyed one-half of Georgia's peach crop and one-third of its apple crop. Heavy rains in south Georgia have severely damaged corn and tobacco in some areas and have hindered the harvesting of pulpwood.