Reports from around the District indicate a slowing in the pace of the region's economy. Layoffs continue to occur in scattered industries partly because of fuel and energy problems, Construction activity grows weaker particularly in south Florida. Tourist activity is also off in this area. Retail sales reports, as expected, indicate some weakening in January. Tennessee directors noted some improvement in car sales, particularly for medium-size models and for used cars. Shortages of basic materials continue to restrain production, but these shortages appear to be easing in some cases. As usual, plant announcements were brisk with major utilities accounting for the lion's share.

State labor departments report filings for unemployment insurance have increased because of the energy situation. In Georgia, at least 13,000 workers have lost their jobs because of the energy crisis. This figure does not include several thousand auto assembly workers who were temporarily laid off their jobs in Atlanta. An announced 600 employees will be laid off at Ford Motor Company's Atlanta assembly plant beginning in March. In Nashville, 130 Ford glass plant workers were furloughed indefinitely because of the slump in big car sales. A Louisiana director expects that state's economy to be more severely affected by oil and gas allocations because nearly 20 percent of the State's employment is related to the petroleum industry. Two Tennessee manufacturers, one of gas ranges and the other of heavy equipment, reported layoffs. However, the Aluminum Company of America plant in Tennessee is adding 400 workers to its work force.

Although several residential and commercial construction projects have recently been announced, the level of activity is below that of a year ago. South Florida appears to be most severely affected. One Florida director indicates that the 1974 residential building outlook appears optimistic for only a few north Florida cities. Most developers are experiencing disappointing sales which they attribute to the gas shortage. He reports that plans for continued development of present projects are being temporarily abandoned.

Tourist traffic continues depressed. A road check two days after Christmas showed that the influx of northern cars to south Florida was 30 percent under the same day in 1972. In south Florida, occupancy at the large elegant hotels is running near capacity, but the smaller motels and less expensive restaurants and lounges are reporting declines. As reported earlier, the sharpest drop in tourist traffic is in central Florida. In the words of one director, the motels around Disney World are beginning to look like ghost towns. As a result of the drop in tourism, State revenue is expected to fall by about 25 percent, according to Florida's State Comptroller. Tourist activity accounts for about one-third of Florida's sales tax revenue.

Retail sales, including auto sales, were weak according to the most recent reports. Department stores in the Nashville area did not meet their sales expectations for the month of January. Alabama furniture manufacturers report that demand for their products continues strong and that they are unable to supply all new orders. A Tennessee director, however, expects a 15 percent decline in sales of premium-priced furniture during the first half of this year. Reports from auto dealers confirm the shift to small cars with a resultant softness in the big car market. However, reports from three different areas in Tennessee indicate that the rush to small cars may be slowing with sales of medium-size cars improving. Large car sales are still depressed. The used car market is beginning to pick up considerably, according to a Nashville area dealer. As reported last month, this market has been extremely depressed.

Materials shortages, particularly petrochemical materials, continue to restrict production of plastic products manufacturers. One Alabama plastic company found that it could not get the needed resins to begin operations. The plant is now being converted to a different type of operation. Steel and fertilizer, particularly ammonia, are two materials which continue in very short supply. The truckers' strike has worsened some of these shortages; others appear to be easing. Furniture manufacturers report that for the first time in many months they can obtain the supply of lumber they need. Printers in the Nashville area indicate that paper and ink supplies are now easier to obtain.

A number of plant announcements were recorded. The largest announcement was a mammoth $2,9 billion nuclear electric generating plant to be built by Alabama Power Company. Exxon Nuclear Company announced plans to build a $250 million reprocessing plant in Tennessee, using "spent" nuclear fuel from Oak Ridge atomic facilities. Central Louisiana Electric Company has committed $56 million for 1974 construction. Kaiser Aluminum and Chemical Corporation will construct a multimillion dollar plant at Mobile, Alabama to fabricate, assemble, and install huge liquefied natural gas tanks on ocean-going tankers.