A feeling of pessimism has been detected among some businessmen and bankers who feel economic problems are worsening and that little is being done about them. Other businessmen, however, continue to assess economic conditions and prospects optimistically. The pace of construction project announcements has slowed, but many new plants and plant expansions are planned. Several recent wage settlements call for increases of between 5.5 and 6 percent.

Zoning has been approved for a major planned unit development north of Atlanta. The project will contain homes in the $70,000 to $150,000 range, as well as condominiums and apartments, and will cost $350 million to develop as planned. Except for this project, there have been few other major projects announced. Condominium developments in the $3 million to $7 million range have been announced for Atlanta, a north Georgia resort area, Birmingham, and Fort Lauderdale. An economic research firm located in south Florida has warned that that area may be entering a period of overbuilding similar to that of 1969-70. Tight credit conditions are blamed for holding down single-family housing starts in the Atlanta area. Savings and loan associations in Atlanta have reportedly tightened credit standards, and a local newspaper has carried a story predicting an increase in mortgage rates.

There have also been relatively few announcements of major nonresidential construction projects. A new hotel is scheduled for New Orleans, and there is a possibility that a new complex of hotels and office buildings will be built in that city. A $50 million, 100 acre office park is planned near Miami. A $7 million shopping center will be built at Huntsville, Alabama. A textile firm will build a $5 million office and distribution center in the Atlanta area. Near Tampa, a glass producer has purchased a tract of land for a distribution center. Two 100-unit motels will be built in east Alabama.

A chemical company is undertaking a $43 million expansion of fertilizer plants in Mississippi. Wood product firms will build three plants in Alabama and two in Georgia at a total cost of $35 million. An oil company has announced a $13.5 million expansion at a south Alabama refinery. A $12 million heavy machinery plant is planned for the Birmingham area. A tire company is tripling the size of its Alabama plant. Rubber and plastic products will be manufactured at a new plant in north Alabama. An underground coal mine employing 200 will also be opening in Alabama. Apparel manufacturers will locate two plants in southwest Louisiana, each eventually employing 300. A number of smaller plants are planned throughout the District. In recent months, there has been a sharp increase in the number of companies investigating the Lake Charles, Louisiana area as a possible plant location.

Several Atlanta construction trade unions have recently accepted two-year wage contracts calling for increases near the 5.5 percent guideline. Hourly workers in the nuclear industry at Oak Ridge, Tennessee have accepted a wage increase considerably above the 5.5 percent level. Workers in Florida's sugar cane industry are pressing for a $1 an hour increase, but producers are offering a 10-cent-an- hour raise. An auto assembly plant in Atlanta has been struck in dispute over production schedules and health and safety standards. Despite an unemployment rate near 5 percent, a Mobile businessman reports that an extreme shortage of skilled labor has forced many companies to increase training efforts.

A special survey of retailers in east Alabama found that sales are up strongly and that merchants were particularly pleased with sales in the July 4th week. However, retailers in Tennessee report that shoppers are becoming more price and quality conscious and that they are waiting for sales. Auto sales are reportedly booming in the Tennessee portion of the District and used cars are particularly scarce. Two auto dealers in east Alabama expect their inventories to be depleted by the time 1974 models arrive.

In spite of late plantings and other difficulties, the Louisiana rice crop is in good condition.