Manufacturing Manufacturing activity continued to expand last month, with plants operating at moderately high levels of capacity. Purchasing agents reported some difficulties obtaining materials due to rail-shipping delays, which increased lead times. Some agents expect rail-transportation problems to continue in the near future. In spite of a moderate decline in inventories last month, most manufacturers say they plan further reductions because stocks exceed desired levels. Housing Builders report housing starts were down slightly last month but up somewhat from a year ago.
Builders anticipate a normal seasonal improvement in construction activity in the coming months.
Sales of new homes edged down last month due primarily to seasonal factors, resulting in a slight increase in inventories of unsold new homes. Most building materials were readily available and delivery times were normal. Mortgage lenders say demand was unchanged last month, but demand is expected to increase somewhat in coming months as more consumers refinance mortgages. Banking Bankers report that both loans and deposits increased last month, while loan-deposit ratios edged downward. Loans increased in all categories except consumer loans and home equity loans, which were flat.