Commercial property rental markets are soft in some Districts. Prices for basic metals and grains also are weak. Manufacturers in the Richmond District report declines in prices paid and received in the past month. Philadelphia reports industrial prices stabilized in May and June. However, prices of livestock and crude oil are rising.
Bankers are concerned about delinquencies and loan quality.
Little, if any, growth is reported in bank consumer lending. Loans to finance purchases of automobiles are reported to be constrained by usury laws. No strength is reported in real estate lending. Business loan demand is reported strong in some Districts and weak in others. Where strong, it is variously described as distress borrowing and as a substitute for tapping the bond market, but there is little indication of borrowing for plant expansion.