Retail Sales Retailers in the district reported a modest rise in activity from August to September and early October. Clothing sold well, while sales of home furnishings and most other items were generally weak. Store inventories edged up but most managers were satisfied with current stock levels, as expectations of future retail activity remained strong. Motor vehicle sales were up slightly in September and early October. Dealers were largely successful at managing inventories during the model year changeover, with few reports of difficulties selling 2000 models or obtaining new vehicles.
Expectations remain soft for vehicle sales in coming months.
Manufacturing District factory activity edged up in September and early October, with slightly more firms reporting high levels of capacity utilization than in the summer. Exceptions included several producers of heavy machinery who have seen demand weakened by increases in interest rates and fuel costs. Manufacturing materials were generally available, with lead times largely unchanged. Managers do not foresee difficulties in obtaining materials in the near future. Inventories were down slightly from the previous survey, but most managers were eager to trim stock levels further.