Trade: West and East Coast Total Import Volume (TEUs)
In the middle of the slow season for container imports, all the major U.S. ports were in good condition, operating without congestion. Looking ahead toward the coming 2006 peak season, operators may expect new high-capacity vessels added to trans-Pacific services to affect water routes through Panama and Suez services. Also, some Asian imports will not revert to being handled through West Coast ports, due to changes in supply chain practices. This includes the use of new regional distribution centers, which explains the growth at the ports of New York/New Jersey, Hampton Roads, Charleston, and Savannah.

 

Credit: Card Risk Outlook
Delinquencies as a share of total outstanding credit card debt are expected to rise to 4.2% by 2007, compared with current estimates of 3.9%. Net charge-offs as a share of outstanding debt will decline to 4.9% by 2007, compared with 5.8% last year. Key inflation risk factors suggest that the Federal Reserve has not yet finished raising interest rates. Global Insight expects one more hike in the federal funds rate, to 4.75%, at the end of March.

 

Construction: Retail Building Construction
According to Global Insight’s latest forecast, construction spending for retail buildings will increase 0.7% through 2006. Much of this relative weakness may be traced to a slowing residential housing market. Retail construction typically moves with residential construction, and may lag or lead, depending on the area and the planning process of particular developers. Separately, and in contrast, office building construction will grow 4.2% by the end of the year.