Local Caterers Seem Busy

Last week, the Penn Quarter neighborhood in Washington DC was crowded with a fantastic mix of people. There was a Wednesday night hockey game and the theaters were all packed. I noticed several restaurants with private party signs in the window. The majority of these events were very well attended and people seemed more upbeat than last year.

Inflation was fairly tame in 2010 and salary increases are expected to be modest. The large federal labor pool won't be getting a raise this year. The cost of housing has been declining from the peak years and many people are stretching the miles on their vehicles. Frugality may be showing up in larger bank balances and lower credit card bills. At least in the DC Metro area, it looks like party time.

We can expect more modest splurges with more people participating in the festivities.

Gas prices are higher than last year which may signal stronger economic activity in the larger economy. The DC Metro area received our first snow this week. Many local merchants remember the very rough February in 2010. We need the snow falls to be more manageable if the winter is to stay business friendly.

Feel free to comment and let us know how the conditions are in your area.