Manufacturing Manufacturers continued to operate at moderately high levels of capacity last month. Manufacturing materials were generally available, with lead times either holding steady or declining. Manufacturers have been trimming their inventories, and some say they plan further reductions because stocks exceed desired levels. Housing Builders report housing starts slowed last month while remaining above year-ago levels. Most of the decline in starts was in single-family homes.
Builders expect little change in construction activity in the first part of the year.
Sales of new homes also fell somewhat last month. Most building materials were readily available and delivery times were normal. Mortgage lenders report demand was slightly lower last month. Commercial and industrial loans, consumer loans, commercial real estate loans, and agricultural loans all edged up. Demand deposits, NOW accounts, and money market deposit accounts also rose, while small time deposits and large CDs were flat.