Real estate markets are strong in most parts of the District. Loan demand, particularly for business loans, remains relatively strong. Farmers appear to have had a good crop year, with prices and yields generally above average. Consumer Spending Retail contacts report that September and October sales were up about 4 percent from one year ago. Toys, home improvement products and women s apparel were the biggest sellers.
Contacts also report that their inventories are at desired levels.
Most are expecting a strong holiday season, with electronic products, toys and jewelry leading the way. Moreover, most believe that the first quarter of 1997 will yield better sales than a year earlier. Car dealers were split in their sales reports for September and October. While about half saw sales increase about 8 percent over the year before, the rest saw sales decline about 10 percent. Rebates have not been used any more than usual to move product.