Dealers have been expanding inventories slightly as they expect sales of new models to increase somewhat the rest of the year. Manufacturing Manufacturers operated at moderately high levels of capacity last month. Manufacturing materials were generally available, although problems with rail transportation caused lead times to edge up. Manufacturers have been expanding their inventories slightly but plan to trim inventories somewhat in coming months. Housing Builders report housing starts declined slightly last month and were generally unchanged from a year ago.
Builders anticipate a normal seasonal slowdown in construction activity toward the end of the year.
Sales of new homes were flat last month and were down slightly from a year ago. Most building materials were readily available and delivery times were normal. Mortgage lenders report some slowing in demand last month but expect little change the rest of the year. Banking Bankers report that loans and deposits both edged up last month, leaving loan-deposit ratios unchanged. Commercial and industrial loans, commercial real estate loans, and residential construction loans all increased, while other loan categories were little changed.