Demand for corrugated boxes was still strong, but sales of liner board and other commodity paper were down because of weak international demand and strong import competition. Refineries have operated at unusually high levels of production and kept inventories full. Services Demand for business services continued to increase, but with some pockets of weakness, particularly serving customers in the oil and gas industry and, to a lesser extent, in consolidating industries such as banking and high-tech. Transportation firms, such as passenger airline, trucking and rail, reported an increase in activity. Service contacts were optimistic about the outlook, but some expressed concern about stock market declines impacting future business activity.
Contacts remain optimistic about the sales outlook.
Auto sales rebounded some from softness in early August, but dealers expressed concern about the stock market affecting future sales. Financial Services Loan demand remained strong overall, and bankers reported no change in credit quality. Home equity lending was still strong, but contacts said auto and personal lending was slowing, partly because customers were consolidating loans to gain a tax deduction. Construction and Real Estate Construction activity continued at very high levels, but there are signs of softening in some areas of the real estate market. Contacts said developers are pausing to reconsider planned office projects because office prices have stabilized and there has been a decline in preleasing of buildings currently under construction.