Manufacturing Tenth District manufacturing activity remained fairly strong last month with plants operating at high levels of capacity. Manufacturing materials were generally available, with only spotty evidence of marginal increases in lead times. Inventories last month were flat, and managers reported mixed feelings about their satisfaction with current stock levels. However, manufacturers plan to trim inventories somewhat in the near future. Housing Strong momentum continued in construction activity with builders reporting that housing starts remained relatively high last month, and well above year-ago levels.
Builders expect a seasonal flattening in construction activity in the coming months.
While sales of new homes were up again, they grew at a slower pace than in the recent past. The consistently strong sales have left inventories of unsold new homes at low levels. Mortgage lenders reported that demand last month was generally unchanged, but remained well above year-ago levels. Home purchases continued to account for close to half of mortgage activity. Although less optimistic than in our previous survey, lenders expect mortgage demand to stay modestly strong over the next three months as rates remain low.