Snapshot is a monthly update of the Fifth District economy, published by the Regional Economics section of the Federal Reserve Bank of Richmond. Snapshot includes timely analysis of labor market, household, and housing market conditions at both the state and metro area level.

Recent assessments of the Fifth District economy were generally downbeat, with losses in payroll employment, continued softness in District housing markets, and mixed results from District businesses.

On the employment front, District payrolls were down slightly in February (0.01 percent), though the region's unemployment rate edged lower 0.1 percentage points to 4.3 percent, remaining well below the 4.8 percent national average.

Fifth District real estate markets continued to soften according to recent data. Permitting activity across the District was down 6.8 percent in February, reflecting decreases seen in every jurisdiction except Maryland (11.2 percent increase) and North Carolina (0.4 percent increase). Permit issuance in the District was also down 27.0 percent from year-ago levels, marking the twenty-first consecutive month of year-over-year decline. In addition, District home sales fell 9.3 percent in the fourth quarter, versus a national decline of just 8.5 percent. Moreover, District home prices — as measured by the House Price Index (HPI) — were down by 0.1 percent in the fourth quarter, while U.S. prices inched up 0.1 percent. Nonetheless, over the past year, District home prices increased by 1.0 percent, slightly above the 0.8 percent increase experienced nationally.

Recent assessments of District households were also weaker. Income growth eased to its slowest pace since 2003 during the final quarter of the year and mortgage delinquency rates moved higher in every District jurisdiction.

Reports from District businesses were mixed. Manufacturing activity remained generally soft, but showed some signs of improvement. The index of overall manufacturing activity expanded for the first time in five months, supported by strong overseas demand for U.S. goods. However, hiring activity at District factories was limited and firms anticipated a slow down in shipments, new orders, and capital expenditures over the next six months. On the services side, retail sales edged down further, spurred by a sizable drop in big-ticket sales, and the pace of revenue growth at service providers cooled a bit.