Moreover, national retailers indicate that spending in the Fourth District has exceeded U.S. averages. Sales of seasonal items, electronics, housewares, and furniture have been especially improved between months. Auto dealers say that September sales of new vehicles were up from August and remained at or above their September 1997 pace. However, special dealer incentives may be contributing to recent sales strength. Banking and Finance Demand for consumer loans has softened since the last District report, although mortgage refinancing activity is still high and there has been a significant increase in demand for commercial loans.
Delinquencies remain flat in virtually every loan category.
A few banks report a slightly wider spread between borrowing and lending rates, although none report any change in lending attitudes. Nonbank credit, however, is thought to have become more scarce since August. This development is reported to have made it more difficult for firms to finance certain mergers and acquisitions, pushing some borrowers to equity-related financing. To comment on this site, please fill out our feedback form.