Manufacturers reported a slight increase in shipments but a level pace of new orders. Retail sales in June and July were even with the same period a year ago, but sales of motor vehicles have edged down. Although overall retail sales were weaker than expected by many of the region's merchants, tourism activity has been brisk in the District, and spending on travel and recreation activities has been high. Bank lending continued to rise, on balance, but growth in business loans has slowed and real estate lending has slipped. Looking ahead, most of the business contacts surveyed for this report expect growth to pick up from July's pace but continue at a slower rate than in the first half of the year.
Manufacturers forecast modest gains in shipments and new orders.
Bankers anticipate continued but slower growth in overall lending, although they expect a further decline in real estate lending. Manufacturing Manufacturing activity in the Third District was virtually flat in July. Although shipments from the region's factories rose slightly, new orders were basically unchanged. One-half of the industrial firms contacted in July reported steady order rates, and the number posting increases was offset by an almost equal number recording decreases in orders for their products. A few firms that manufacture capital equipment reported growth in orders, but declining demand was noted by firms that make products ranging from industrial materials to consumer goods.