Industrial Activity Industrial equipment demand is very strong, and there are indications that much of the growth that has been concentrated in the high-tech sectors is also being seen in machinery, steel, and autos. One contact reported growth rates of 6 percent for industrial machinery in orders. Weak farm prices have decreased the demand for agricultural equipment, but this trend has flattened out in recent months. The demand for light trucks continues to be very strong. In recent months the combination of strong demand and declining imports has caused steel prices to rise.
Demand continues to be strong.
Some companies expect to see improvements this quarter, but others do not expect major improvements until the end of the second quarter of 2000. Several companies have announced small job cuts recently. Purchasing managers in the District reported an increase in the growth rate of commodity prices in January. Higher prices were reported in primary metals, engineered polymers, memory chips, PVC resin, and steel. After several months of reductions, inventories of raw materials are starting to be rebuilt.