Personal computer sales increased. Demand was up slightly for semiconductors, and contacts say inventories have stabilized, but they are cautious that a weakening domestic economy could halt the recovery. Demand remains weak for downstream energy manufacturers, although producers benefitted from the drop in oil prices in November. Refiners say demand for gasoline and heating oil has been weaker than they hoped, and producers anxiously await cold weather. Low export volume has left the chemical industry with oversupply.
Contacts believe the industry has bottomed out, albeit at a very low level.
Services Demand for business services was softer, with the exception of temporary service firms who said demand was up over the past month. Legal firms reported slower mergers and acquisition activity, but stronger corporate bankruptcies and restructuring activity. Demand for consulting and accounting services was softer, due to the slow down in commercial real estate activity and the end of year 2000 activities for many companies. Transportation firms reported strong demand for retail shipments and air passenger traffic, but weak shipments of chemicals and oil, especially agricultural chemicals. Thanksgiving sales were mixed, and most retailers agree that Christmas has started slowly.