Total bank lending has increased, largely due to growth in consumer lending. The outlook among the business firms contacted for this report is positive but muted. Manufacturers expect a slight pickup in orders during the next six months. Retailers expect smaller gains in holiday sales this year than last year. Auto dealers anticipate a slight rebound in sales after the holiday period.
Bankers forecast slow growth in lending in the new year.
Manufacturing Area manufacturers reported generally steady activity in November. Shipments were edging up, but new orders were flat, as were order backlogs and inventories. Among the major goods-producing sectors in the District, only food processors and electrical equipment makers noted some increases in demand for their products. Several firms in the steel and metals industries cited the high value of the dollar and competition from imports as factors limiting their sales. On balance, the region's manufacturers have been reducing employment but keeping working hours steady.