Exceptions are energy, non- residential construction, defense, recreation, and some high technology firms. Real consumer spending has slipped, and the outlook for Christmas sales is mixed. New car sales declined sharply in October, and the depressed housing market continues to slump. Declines in manufacturing and employment are spreading, but inventory levels are generally not reported to be excessive.
Bumper crops are in prospect, and farm incomes are depressed.
Demand for most loans has slowed, but business borrowing is up in some districts. Concerns about a continued deterioration in the quality of loan portfolios are cited. All districts report further weakness in consumer spending, as increases in nominal sales failed to keep pace with inflation. Consumer durables account for much of the current weakness, although sales of soft goods and apparel are off in Boston and Richmond. Non- auto retail inventories do not appear to be excessive in most districts.