Reported shortages of money, men, and materials are putting a damper on the District's economic growth. While announcements of new plants continue brisk, there is growing uncertainty about future spending plans and economic activity partly related to the controls program. Sharp declines in residential construction have been noted. Despite gasoline shortages, Florida's tourist traffic remains excellent.

Tight money markets are curtailing residential construction, particularly in the Florida area. Savings and loans are currently being sapped for funds as investors turn to Treasury bills and other higher-interest investments. Florida bankers are receiving loan requests from savings and loan institutions. One banker is lending to them at the Fed funds rate. One Florida banker notes that interest rates are running up against state usury laws and that the small investor is feeling the brunt of the current money shortage. According to one Florida businessman, high interest rates have stimulated the purchase and reselling of older homes. Many of these old homes have been relocated from sites near interstate highways. Home-building in Atlanta and areas of Louisiana, Mississippi, and Alabama is also down from year-ago levels. Reports of shortages of mortgage money from savings and loans have been received from all of these areas.

Businessmen also report shortages of labor and materials. Apparel producers, particularly in the Miami area, indicate that it is virtually impossible to find workers, skilled or unskilled. Cotton shortages have limited the supply of denim fabric and forced a switch to man-made fabrics, according to two Georgia apparel manufacturers. Other material shortages have forced the closing of plants in some areas of the District. In Florida, a shortage of Portland cement has caused the closing of six ready-mix plants. Natural gas shortages had temporarily closed a number of paper products plants as well as a paper mill in Louisiana. Because of the paper shortage, partly the result of the Canadian strike, two of Florida's larger newspapers are cutting back on the size of their publications.

Poultry producers apparently are expanding flocks as a result of today's high poultry prices. In late August, broiler placements in Georgia increased sharply. One local poultry equipment manufacturer indicated a strong pickup in demand. Recent rains from tropical storm Delia have damaged the rice and soybean crops in southwest Louisiana. Less than one-half of the crop has been harvested. High meat prices have caused an increased slaughter of milk cows in Georgia; some reports indicate a critical milk shortage may result.

In assessing the results of the President's economic controls program, several businessmen and bankers report that the resulting uncertainty will probably dampen business intentions for plant and equipment expenditures. However, this expected decline has not as yet been noted. Announcements of new plants continue brisk. Texaco plans to build a $300 million crude oil refinery in Louisiana. An American subsidiary of a large international chemical company with headquarters in Germany may locate a new plant in Louisiana which will initially employ approximately 1,000 workers. There appears to be a growing international flavor to many investments taking place in the District. One-half interest in a large plot of Louisiana riverfront property has recently been sold to an Italian investor. Georgia state officials have reported that since December of 1972, the Japanese have either put into operation or announced 10 manufacturing facilities in Georgia. One local banker indicated that a southeastern cotton grower has contracted his entire production for the next five years to a Japanese firm.

New announcements of commercial and public projects also continue to roll in. In Louisiana, a long delayed new north-south superhighway costing $500 million has been announced, and a new shopping mall which will employ 2,000 workers has recently opened. Other announcements include a $150 million office park-hotel-regional shopping center complex and a $50 million truckstop complex, both in the Atlanta area.

Florida's summer tourist season has been excellent. The Pensacola area reports tourist traffic up nearly 22 percent over last year. Central Florida has enjoyed a strong summer business, despite fears of a gasoline shortage. A survey of the Georgia Oilmen's Association indicates that independent jobbers and distributors had either been shut off completely from their usual sources of supply or had been placed on strict allocation limits.