Low grain prices and high costs for farm inputs have negatively affected farm finances in the major agricultural regions of the country. Oil and gas drilling have increased in response to higher prices, but mining activity has been cut back in the wake of slackening demand for mine output. Bank lending has been sluggish except for an increase in home mortgage refinancing. Banks in some regions across the country have tightened credit standards. Demand for manufacturing workers has been declining, and recently, demand for construction workers and information technology workers has softened.
Demand remains strong for clerical workers in a variety of industries and for health care workers.
Employers reported some easing in wage pressures, but they have seen increases in health benefit costs. Higher prices for energy, especially natural gas, were noted in nearly all Districts, but price pressures for many other products do not appear to have increased. Consumer Spending Retail sales rose modestly in a majority of Federal Reserve Districts in January and February compared with the same months last year. Increased sales of general merchandise were noted by New York, Philadelphia, Atlanta, Chicago, Minneapolis, Dallas, and San Francisco. Decreased sales were reported by Boston, Cleveland, Richmond, and Kansas City.