Actual shortages of raw and intermediate materials were noted in only a few cases. Boston finds the strength in its industrial sector to be widespread, citing automotive products, aircraft engines and parts, machine tools, instruments and housing products. While thousands of automotive workers have been laid off in the Cleveland, Chicago and St. Louis areas as a result of the Teamsters' strike, manufacturing activity in other sectors is at a high level. In Cleveland, for example, the steel and aluminum industries are reported operating at effective capacity while the primary metals, machine tools, rubber and plastics, and paper and paperboard industries are at high or near peak operating rates. Most other districts report strong industrial activity, although less robust activity was recorded by Philadelphia and Atlanta.
Consumer spending continues to grow, but the pace of growth is mixed across the nation.
Reports from Minnesota and San Francisco suggested that retailers were enthusiastic about the pace of retail sales. Richmond found signs that the normal Easter buying spree was underway. Sales remain strong in northern New England, but some slight weakening may be occurring in other parts of the Boston district. Auto sales were strong in many areas of the country, led by strong demand for small, fuel-economizing cars. Philadelphia reports very soft retail sales in early April, while sales in New York were mixed in recent weeks.