Consumer spending remains soft, especially for big ticket items.
An inventory buildup is widely noted, although swift adjustments in production are generally thought to have kept inventories close to desired levels. There is little indication that capital spending plans have been altered, although scattered reports of cutbacks and delays are cited. Loan demand has not improved from last month's low levels despite easing of restraints and lower interest rates. Substantial declines in mortgage interest rates and improved credit availability has sparked some improvement in mortgage loan inquiries and sales of existing homes. Manufacturing of durable goods declined further this month, with signs of the recession spreading to the capital goods industry.